Select Committee on Culture, Media and Sport Appendices to the Minutes of Evidence


Memorandum submitted by Energis Plc

  Energis has been extremely proactive in its campaign for business and consumers to have access to affordable broadband. Energis instigated a complaint to Oftel to stop the incumbent BT pricing broadband interconnection services excessively.

  After eight months of deliberation the Telecommunications Regulator has now issued a draft direction that mandates BT to provide Asymmetric DSL and Symmetric DSL ATM interconnection—but fails to tackle excessive pricing.

  Energis welcomes the determination to mandate BT to provide high speed internet access to operators, so that we may offer services to business and consumers, as a step in the right direction. However, Energis strongly believes that in order to deliver the vision of Broadband Britain interconnection must be offered under reasonable terms, using cost orientated pricing as the appropriate methodology.

  In the absence of cost orientated pricing and appropriate service level agreements and service level guarantees, competition will be stifled both in terms of alternative network provision and content development.

  I thought you may wish to receive our response to Oftel, along with two reports that Energis has commissioned. The first report by Dr Chris Doyle at Charles Rivers Associates, examines the economic merits of Oftel's pricing methodology proposal. The second is a report outlining the methodology that could be employed to create a cost orientated model for the ATM interconnection product portfolio by Richard Cadman at Beaufort International.

  Energis hopes that you are able to support our submissions in whatever way you are able. We would be delighted to discuss the content of our response and explain or elaborate on any of the points made.

25 January 2002

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