Ofcom steps in and BT slashes migration charges

Ofcom declared today that it had a mind to cut BT's migration charges - and, almost simultaneously, BT announced that it was slashing them as of May Day.

The new charge for switching from IPStream to DataStream is to be £11, instead of £50 or the special offer price of £25. BT asked the regulator for permission to bring in the new prices on 1 May instead of waiting for the 28-day statutory notice period.

This coincidence can be seen as a victory for Thus and Tiscali, which had made the original complaints about the high cost of moving customers from BT's IPStream to DataStream. The Broadband Industry Group also stepped forward to crow a little.

But there is no rest for the wicked. Statements of all the opposition parties said a quick and implied thank you to Ofcom then returned to the charge.

Mary Turner, Tiscali CEO, said: "The price, however, is only the first hurdle and the success of today's decision depends largely on the outcome of the margin setting between IPStream and DataStream, which Ofcom is due to announce at the end of May."

She added that she hoped that BT would set up efficient migration processes for customers.

The Broadband Industry Group echoed Turner and returned to the attack. Its statement ended: "Nevertheless it will have little significance without a fair wholesale margin and efficient bulk and individual migration processes. The Group will only truly recognise success when a level regulatory playing field that allows real wholesale competition is achieved."