Why did Ofcom reject the break up option – it worked in the gas industry, why not in telecommunications?
Ofcom believes that it would not be proportionate to break up BT at this time, because we think the package of undertakings that we have accepted is sufficient to address the problems that we identified in the market. Ofcom accepts that there are certain benefits to BT’s vertical integration. It is important to note that Ofcom does not have the power to break up BT; Ofcom would have to refer the issue to the Competition Commission. If the issue was referred, the Competition Commission might or might not think that break-up was a suitable remedy. • How will the undertakings benefit consumers and when will these benefits become evident? Will consumers see a fall in their telephone and internet bills? Ofcom’s Strategic Review of Telecoms started by looking at what consumers want from today’s telecoms markets. Ofcom found that consumers do not just want lower prices, but also new products, and more choice. Ofcom’s Review found that the UK telecoms industry was not well-placed to deliver th
