Oftel investigates internet access prices

UK telecoms regulator Oftel has begun an investigation into the dial-up internet access market to assess whether UK consumers are getting the best deal possible.

Oftel has said the purpose of the "major review", which will conclude in May next year, will be to investigate whether there is effective competition in the UK internet access market.

According to Oftel, more than a quarter of UK homes access the internet via dial-up access. The regulator said it wants to ensure that the prices for internet access in the UK compare favourably against the UK's main competitors, and for consumers to have a variety of options for reliable and workable access to the internet.

Oftel claims that the UK already has some of the cheapest deals in Europe for dial-up internet access. But the watchdog has admitted that while the UK has some of the cheapest off-peak deals, there is still a lot of work to do to ensure consumers have the best value peak-time services.

The investigation follows a month of intense pressure and heavy criticism on the regulator. Last month senior telecoms professionals slammed Oftel for failing to deliver effective competition to all parts of the UK. The watchdog has denied that the review is a direct result of this pressure, but admitted it has been slow to react in some cases.

An Oftel spokesman said: "The review has been planned for at least nine months. Yes, on certain occasions we sometimes haven't moved as quickly as we would have liked to. But on the majority of occasions we have taken action. We realise how important cheap internet access is for the UK, and it is high on our list of priorities."

The watchdog said that while the review will focus on dial-up access to the internet, it will also consider the effects of accessing the internet through other devices such as DSL, cable modems, leased lines, broadband fixed wireless, mobile and satellite.