§ Miss Geraldine SmithTo ask the Secretary of State for Trade and Industry if he will list the measures the Telecommunications Regulator has taken to reduce the cost of internet access. [127630]
§ Ms HewittThe Government believe that the best way to ensure sustainable lower costs for internet access is through promoting competition. Through measures such as the introduction of an effective Calls & Access product and Carrier Pre-Selection Oftel is promoting competition to drive down general call charges. For narrow band internet access Oftel has promoted greater flexibility in internet tariffing through the introduction of the Number Translation Service (NTS) formula that allowed the call origination charged to be shared with other operators who also carry the call. Oftel has recently made a determination that requires BT to provide a flat rate internet interconnection product to competing operators. Oftel has negotiated a range of schemes offering reduced price internet access for schools.
For broadband access, Oftel is requiring BT to open up its local loop to other operators so that they can compete in the provision of broadband access. Also, once BT has installed ADSL on local lines, it will be required to give other operators access to its upgraded system on nondiscriminatory terms. A recent study produced for Oftel showed that of the five large markets studied the UK had on average the lowest prices for residential access at both peak and off-peak times.