Ofcom have launched a consultation aimed at lifting price control regulation on BT line rental and calls. This market has evolved significantly over the past decade, with average call prices having fallen by more than 50% since 1996. More than 10 million households now use providers other than BT for their phone calls, including more than 4 million households on cable networks

In addition, new technology such as VoIP is enabling consumers to make free calls over their broadband connection. Ofcom estimates that over 500,000 consumers in the UK are using the technology as their primary mode of making calls - a number set to grow dramatically in the next few years.

Ofcom say,

“22 years after price controls were first imposed when the UK telecoms market was liberalised, Ofcom is today publishing proposals to deregulate retail price controls on BT line rental and calls.

Under the proposals - which are subject to public consultation - all phone companies, including BT Group plc, would be free to set their own prices and compete for customers in future. The changes would take effect from 1 August 2006.”

Ofcom Chief Executive Stephen Carter said:

“More than 20 years on, sustained competition, informed customers and the rapid growth of new technology provide the necessary environment for substantial deregulation.”

The deadline for responses is 30 May 2006 and the full consultation document is published at: http://www.ofcom.org.uk/consult/condocs/retail/