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ISPA calls for revised Margin Squeeze Test
Friday 12 November 2004 13:44:00 by Andrew Ferguson

The ISPA has now had several meetings with Ofcom over the Margin Squeeze test that has seen the pricing of BT IPStream Office products using the standard pricing model increase substantially. The latest press release from the ISPA is calling on Ofcom to review the formula used, and to actually consider the broader market, and not just the very large providers.

The SME market is addressed by a large number of smaller and medium sized service providers, and these are the people who do not have the resources to keep lobbying Ofcom, unlike providers like BT, Wanadoo, Tiscali etc who can afford to have staff watching Ofcoms every move.

The UK market is dominated by a small number of large providers in the residential arena, but in the business sector, many companies prefer to deal with the smaller and often local providers. If Ofcom do not ensure that these companies can compete on a reasonable level, we may see many smaller ISPs merging or being swallowed by large providers, resulting in a less competitive broadband market. The opposite of what Ofcom should be promoting.

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