Ofcom proposes significant changes in BCMR

On 15 November 2012, Ofcom published a further consultation document in respect of its Business Connectivity Market Review (BCMR), in which it had considered competition in the provision of leased line services in the UK.  Ofcom makes a number of significant changes to the proposals made in its June 2012 BCMR Consultation.  In particular, Ofcom now proposes to impose certain accounting obligations on BT and KCOM, in the product market areas where it submits that they have significant market power (SMP).

In its June 2012 Consultation Ofcom consulted on:

  1. its identification of a number of relevant wholesale and retail markets in specific geographic areas of the UK;
  2. its determinations in respect of the designation of SMP on BT and KCOM; and
  3. its proposals on remedies to be imposed on the operators (in the form of services conditions and directions set out in the draft leased lines charge control document of July 2012).

Ofcom now proposes to impose cost accounting obligations on BT and accounting separation obligations on both operators in each of the relevant wholesale product markets in which Ofcom has proposed that they have SMP.

DotEcon is providing expert economic advice and support to a telecommunications provider in its responses to the Ofcom BCMR and leased lines charge control consultations.

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