UK telecom regulator rejects BT’s calls to probe alleged dominance of Sky

UK telecom regulator Ofcom has rejected calls by BT to investigate alleged dominance of arch rival Sky.

The news comes as the broadcast and telecoms watchdog announced a review into how UK consumers of services under its remit could switch providers.

According to Ofcom as part of the review it would look at the pay-TV industry, but only with regard to bundling and the ease with which TV customers could switch providers.

The development comes as a set back to BT.

A BT spokesperson told The Guardian newspaper, "Ofcom have overseen a regime that has balanced investment with competition and we hope they will once again put the needs of the UK and its consumers ahead of those who have tried to keep the UK in the digital dark ages.

"The one area where consumers are getting a raw deal is pay-TV. Ofcom have said they will consider whether to make it easier for customers to switch in this area but this isn't enough. Much tougher action is needed to address the fundamental flaws in this market."

In a speech a week ago, to the UK Broadcasting Press Guild, BT Consumer Division CEO John Petter called on Ofcom to formally amend the scope of its Digital Communications Review to include pay-TV, over high prices and poor outcomes for consumers arising from a lack of competition.

Meanwhile the regulator announced that BT could be forced to break itself up and spin off the business that sold wholesale network services to its competitors.

According to Ofcom, the separation of Openreach from BT could improve competition and bring benefits for consumers. It cautioned, however, that this would be a challenging process and some of the results sought rivals might not materialise.

Sky and TalkTalk, were campaigning for a break-up of BT on the grounds that its dominance of the broadband market was unfair and that Openreach delivered an inferior service.

BT chief executive, Gavin Patterson, had already made it clear that a move of the kind  would be challenged through the courts – a process that could take years and mean investment in a new fibre network would be suspended.