Provisional conclusions on the bundling of TV and telephony

United Kingdom

On 8th February, the ITC and Oftel published the provisional conclusions of their joint consultation into the bundling of TV and telephony services which was announced in April 1999.

The consultation considered two alleged practices, namely, whether it is anti competitive to refuse to supply either telephony or television separately where the services are sold as a bundle; and whether it is anti-competitive to offer telephony and/or television at less than the costs directly attributable to the relevant service.

The ITC and Oftel have provisionally concluded that there is no basis at this time to take action against the cable operators in relation to the practices or pricing of bundled telephony and television services. The situation will be kept under review and may be revisited if market conditions change materially.

During the course of this investigation it was evident that cable operators are not refusing to supply telephony and television services separately and that at least some customers are exercising these separate options.

(ITC News Release 11/00)