From what you've posted it may help you to understand more of the detail about the rules. It's a lot of reading, and during my time at Plusnet I had plenty of work to do in getting my head round what is and isn't allowed. The TSR is probably a good place to start, but suffice it to say I reckon you're a bit off base on this one.
The long and short is that BT Wholesale are free to make commercial deals with whoever they want, internal or external to BT Group. In this case a number of service providers have operated similar product lines for Wholesale over the years (Griffin for one I remember). I expect the pricing to the customer ended up being about the same as it would be now. Plusnet built a platform that is very efficient when it comes to managing those sorts of products, and it's a no brainer really that Wholesale would want to resell that. As I say, Wholesale sell the products of lots of companies, both owned by BT and not.
The main point about the regulatory environment BT are under is that there are strict rules that relate to cross-subsidisation for certain types of products and across the group, along with some other potential causes of anti-competitive behaviour in markets where BT have a monopoly (A monopoly that in the main part they were handed on a plate during privatisation!). To a point I think it's no bad thing to be cynical, and I for one would like to see them being more open in certain areas. But what I can say from personal experience is that BTs own regulatory team make sure the rules don't get broken and are pretty obsessive about doing so. The way the industry is, a lot of people move from company to company and word about uncompetitive behaviour would soon get about and result in potentially disastrous complaints to the regulator, even if internal people haven't blown the whistle first.
/me goes back to lurking
Ian
Edited by IanWild (Sat 25-Apr-09 20:33:24)



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