BT on collision course with Oftel

BT faces a showdown with telecoms regulator Oftel after refusing to follow new rules on opening its business to competition.

In a private meeting with Oftel officials on Wednesday, BT refused to sign up to policies governing how the company transfers customers to other providers. This follows accusations from rival operators that BT had staged a "dirty tricks campaign" to restrict competition in the market.

If BT refuses to budge, the company could eventually be hauled in front of the Competition Commission.

The row centres on a process called Carrier Pre-Selection (CPS), where BT transfers customers to rival operators though its telephone exchanges. This allows users to switch suppliers without needing a new telephone line or having to dial a prefix number into the phone. An Oftel spokes- woman said: "We will certainly be taking this forward in a formal manner by enforcing BT to oblige."

BT refused to say why it was not prepared to comply with Oftel's policies on CPS, but said in a statement: "As ever, BT is happy to co-operate with Oftel investigations and will respond directly. However, it is not for us to speculate on the eventual outcome nor discuss our potential reaction."

The argument began in August when rival operator Telco Global Communications sent Oftel a catalogue of complaints accusing BT of poaching its customers even when they had not asked to move back to BT.

This prompted an investigation by Oftel, headed by David Edmonds. The regulator last month ruled that BT must only switch customers back where they have given no- tice to the alternative network. BT is refusing to agree to this.

The new Oftel policies were issued on 8 November, giving BT a month to comply. The company's critics say its strident approach is similar to that taken on local loop unbundling, when BT was accused of dragging its heels. When it did allow full access, the telecoms market had begun to decline and many rivals had gone out of business.