Rules requiring fixed prices for BT’s largest customers look set to be terminated

Large enterprises can look forward to negotiating new line and call charges with BT, as UK communications regulator Ofcom will shortly publish the results of its consultation process on BT's large business pricing structure. Ofcom is expected to scrap current rules limiting BT’s ability to cut preferential deals.

An Ofcom spokesman confirmed that publication is imminent. “We [currently] plan to publish the statement before Easter, though this might slip to the week following,” he said. However, he declined to give any information about the conclusions Ofcom has reached as a result of its study.

Currently BT has to offer the same line and call charges to all business customers spending more than a million pounds per annum, and these tariffs must be published. This requirement for openness gives its main competitor, Cable & Wireless, an advantage. Experts predict that this situation will be scrapped.

Ofcom published initial proposals for a new pricing structure last September, saying that BT "would be allowed to agree individual terms with business customers spending more than £1million a year on telecommunications services, without having to publish its prices". However, Ofcom also added the stipulation that "before BT can introduce bespoke pricing, competitors must be able to replicate BT's services using Wholesale Line Rental and Carrier Pre-Selection products."

A BT spokesman also declined to comment on the upcoming ruling: “This is a consultation process that will go through the normal procedures. We'll wait and see."