20 July 2006
Price controls on the cost of line rental and calls for BT customers have been removed after 22 years.
Telecoms regulator Ofcom said that it was removing the controls as the rapid growth of competition and falling prices meant that the market was keeping costs down without the need for the limits.
Nearly 11 million homes and businesses now use a phone provider other than BT, meaning that the UK has some of the lowest call charges in the world.
"The success of regulation is rarely measured by the ability to remove it. This is a good example of a market now functioning well," said Ofcom chief executive Stephen Carter.
He added: "This deregulation is accompanied by appropriate and specific protections for vulnerable groups."
BT has given the regulator assurances over the protection of vulnerable customers and those on low incomes.
An advertising campaign is due to begin shortly, in order to inform the public of the change and make them aware of the choices between home phone providers open to them.
Price controls will cease on July 31st.
Switch your phone line supplier with uSwitch.com and save on your phone bill. You keep your existing number and line. Compare your supplier today
© 2008 Adfero Ltd
Content for the uSwitch.com market news service is provided by a third party, Adfero Ltd. Whilst uSwitch.com makes reasonable efforts to check the reliability of this content, uSwitch.com does not guarantee the accuracy thereof or endorse the views or opinions given by Adfero Ltd, unless expressly stated otherwise.