News

BT and Vodafone are "just suppliers" - not dominant - Oftel

It's hard not to suspect that politics - not sensible economics - is behind Oftel's decision to rate BT Cellnet and Vodafone, the UK's leading mobile networks, as "not influencers" on mobile data futures.

The two giant comms firms were restricted in what they could do in the retail market, last year, when Oftel decided they had undue influence on the market. Essentially, it made it easier for smaller distributors to set up in areas in which these big carriers might not like to see competition.

Now, in a judgement that is sure to raise eyebrows, Oftel has reversed last year's verdict, and decreed that after all, the two mobile operators - which control vastly more than half the market between them, do not have "influence" on the market.

The announcement originally had to do with resellers of airtime provided on the two networks. Quite reasonably, it said that both Cellnet and Vodafone were obliged to make airtime available at wholesale prices, and then went on to prohibit "undue discrimination or preference" in awarding contracts to third parties.

The Newswireless team looks forward to explanations by our readers of why either giant should, after all, be allowed to exercise either undue discrimination, or undue preference, in their dealings with third parties.

We'd also be grateful for clarification of what "influence" on a market can mean, if it doesn't mean that together, they control way over half of it.