Ofcom has lifted restrictions placed on BT when it was privatised in the mid-1980s which prevented it from bundling together services such as broadband and a landline in a discount package.
The change means that BT will be able to introduce new packages this autumn, joining a bundling trend that its rivals have been driving for years.
BT's competitors, such as Virgin Media and BSkyB, have been able to package together two or more services and sell the bundle for less than the services would cost individually. Previously, because of rules designed to stop the former telecoms monopoly busing a dominant position in the landline market, BT has been able to sell such packages only for a price equal to the sum of the parts.
This is quite big news for many people who will see costs fall.
But Ofcom now believes competition is healthy and BT no longer has "significant market power" in the majority of retail landline markets. The regulator says more than 12m UK households and small businesses use a telecoms provider other than BT, so it is safe to remove one of the last pieces of regulation in the fixed-line market.
TalkTalk is now a major player, with TT now having the most broadband lines since the tiscali takeover.
BT Retail's chief executive, Gavin Patterson, said: "It means that BT will be competing on a more level playing field than previously.
It's good news for consumers and businesses, as this will allow BT to offer more targeted discounts on products and services, and more attractive bundles at better prices – something we have been unable to offer widely to date."
Ofcom's decision also means the company will no longer have to inform competitors in advance on its prices.
For customers, it means that when any of their BT contracts come up for renewal they can choose from a wider range of packages.
This restriction seems to only apply to packages though.. and the retail side.
Bundling packages often makes things difficult to compare.. and many would prefer to keep thing separate or not want all the services.
Not sure if this is going to help those IPStream providers outside the market 1 areas... or if this could drive users to take up a package with BT retail only.
