The UK Office of Communications (Ofcom) dismisses case in pricing wholesale calls and distinguishes between technical margin squeeze and abuse of dominance (Thus / Gama Telecom / BT)

When is a margin squeeze not an abuse?* On 20 June 2013 Ofcom closed its long-running investigation of BT’s pricing of its Wholesale Calls product with a “no grounds for action” decision. [1] The investigation, which commenced in August 2008, focused on allegations of margin squeeze made by THUS plc and Gamma, two competitors to BT in the supply of wholesale calls that rely on BT for upstream inputs (call origination services in particular) provided over BT’s copper access network. The most important aspect of the decision from a policy perspective is that Ofcom carefully distinguished between a technical margin squeeze (i.e. a finding that downstream costs exceed the difference between upstream and downstream prices) and an abuse of a dominant position. Whilst finding a technical

Access to this article is restricted to subscribers

Already Subscribed? Sign-in

Access to this article is restricted to subscribers.

Read one article for free

Sign-up to read this article for free and discover our services.

 

PDF Version

Authors

  • British Competition Authority - CMA (London)
  • CRA International (London)

Quotation

Mike Walker, Geoff Edwards, The UK Office of Communications (Ofcom) dismisses case in pricing wholesale calls and distinguishes between technical margin squeeze and abuse of dominance (Thus / Gama Telecom / BT), 20 June 2013, e-Competitions Bulletin June 2013, Art. N° 87902

Visites 75

All issues

  • Latest News issue 
  • All News issues
  • Latest Special issue 
  • All Special issues