Ofcom Questioned by Sir George Young, MP
Sir George Young, MP for North West Hampshire has put pressure on Ofcom to explain to ISPs how the 'margin squeeze test' is to benefit the ISP industry and its customers. With 28 days notice, the price hike for the Office 2000 wholesale product, which mainly affects smaller ISPs not using Capacity Based Charging, will cause problems for many ISPs, having to force prices up by perhaps £14 to their customers. Many people in the industry are struggling to see how Ofcom arrived at the figures they used for the 'margin squeeze test' and are pushing for a revision with numbers that are accurate to ISPs experiences. For ISPs who charge annually, the price rise may be a cost they will have to foot themselves, in many cases often causing a loss making product.
The lack of communication from Ofcom and BT, and also using the minimum notice possible, shows an exorbitant effort to increase BT's profits and detriment many of the smaller ISPs. UKIF has tasked itself with trying to get some answers and action out of Ofcom, and with further involvement from MP's such as Sir George Young, who has been prominent in pushing for increased Broadband coverage, the pressure can only increase.