BT to be freed from price controls on home phones

Former British telecoms state monopoly BT Group Plc is being freed to set its own domestic phone prices, 22 years after controls were first imposed, Britain's communications watchdog said yesterday.

"New technology and the growth of competition have transformed phone services over the last 10 years," regulator Ofcom said in a statement.

More than 10 million households use providers other than BT for their phone calls including more than four million households on cable networks, Ofcom said, adding average call prices have fallen by more than 50 per cent since 1996.

Ofcom said continued growth in mobile phone use was also a factor in its decision. "(Some) 31 per cent of all UK voice call minutes originated from mobile phones rather than from fixed lines, from July to September 2005."

Under the proposals, which are subject to public consultation, "all phone companies, including BT, would be free to set their own prices and compete for customers in future," Ofcom said. The changes are set to take effect on August 1.