Select Committee on Public Accounts Eleventh Report


Summary


Introduction
The telecommunications market, a vital element of the UK economy, consists of fixed-line and mobile telecommunications, with a range of services, such as Directory Enquiries, offered over telephone networks. 92% of households have a fixed-line telephone.

The fixed-line telecommunications market has been liberalised over the 20 years since the privatisation of British Telecommunications (BT) in 1984. BT then had a virtual monopoly and Parliament created the Office of Telecommunications (Oftel) to regulate the market. There are now competitive alternatives to BT in virtually all sectors of the market, but BT retains around 70% of the total market and 75% of the domestic market.[1] There is therefore a continuing need for regulation of the telecommunications sector. From 29 December 2003, the Office of Communications (Ofcom) took over Oftel's regulatory functions, as well as those of four other bodies.[2]

On the basis of a Report from the Comptroller and Auditor General,[3] we took evidence from Oftel on its regulatory strategy, the choices for consumers, and combating anti-competitive behaviour.



1   Oftel Market Information, Fixed Update, November 2003 Back

2   The Broadcasting Standards Commission, the Independent Television Commission, the Radio Authority and the Radiocommunications Agency Back

3   C&AG's Report, The Office of Telecommunications: Helping consumers benefit from competition in the telecommunications market (HC 768, Session 2002-03) Back


 
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Prepared 23 March 2004