Ofcom opens another BT case

UK telecoms watchdog Ofcom has opened an investigation into BT's wholesale pricing of voice calls, prompted by complaints from telcos Thus and Gamma Telecom.

Both companies accuse BT of anti-competitive practices in contravention of the Competition Act 1998 and Article 82 of the European Treaty.

Specifically, they allege that BT has been pricing wholesale end-to-end calls to resellers at below cost since April 2005, with the deliberate aim of driving down the margins for competitors – like Thus and Gamma – and consequently putting them out of business.

Ofcom's investigation will decide whether BT has abused its dominant position in the wholesale voice connections market.

While Thus is the telco spin-off of Scottish Power, formed in 1999, Gamma, founded five years ago, focuses on selling telecom services to small businesses.

The complaint has been supported by Cable & Wireless.