Ofcom has confirmed that it will carry out a full assessment of the telecoms sector beginning in the new year.
The most sweeping review of the industry in over a decade has led pundits to predict various outcomes, including cheaper mobile and landline call charges.
There is also the long-running issue of whether to split BT's wholesale and retail divisions.
Ofcom takes over the regulatory reins from Oftel on 28 December and expects the review to last a full year.
Among the areas being looked at is the extent to which competition and/or regulation has delivered lower prices and better services.
Ofcom, which will work on Oftel's findings, acknowledged that much in the industry had changed over the past 20 years, and that there are "varying degrees of competition through the sector".
But it added: "In many markets such as residential access (82 per cent) business access (87 per cent) and wholesale call origination (78 per cent), Oftel has found that BT has significant market power."
Ofcom also plans to take note of consumers' perspectives on the telecoms market and how they look at pricing and service.
It will measure this against the type of products and services available, and consumer experience in other countries.
The review will be carried out in three phases, and will attempt to set a future regulatory framework for the telecoms sector.
Ofcom chief executive Stephen Carter, who will lead the review, said in a statement: "This presents a unique opportunity to look afresh at these important and dynamic markets."
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