Ofcom propose that KCOM bundling restrictions be removed
Ofcom has today proposed to allow KCOM, the telecommunications provider in Hull, to bundle broadband, landline and other services together in a move that should save consumers money. Last year, Ofcom made a ruling to allow BT to bundle products together which had previously not been allowed due to BT holding significant market power. Whilst this is still true in Hull where KCOM operate the incumbent telephone network, Ofcom believe that there is no evidence that there is likely to be competitive fixed retail narrowband services in the near future, leaving Hull residents as the only group in the UK who could not benefit from price savings brought about by bundled products.
The proposals from Ofcom will see some restrictions placed on KCOM, requiring that:
- bundles are made available to all residents (and businesses) equally in the Hull area; and
- prices for bundles are set in a way that will not discourage other communications providers from offering their services to consumers in Hull, should they wish to do so.
The full consultation document can be found here, and is open for responses until 2nd September 2010.