Cable companies wary of Oftel decision

Cable operators are receiving Oftel's move towards carrier pre-selection (CPS) with some caution.

The UK telecoms regulator is following an EU directive which calls for operators with significant market power to allow other carriers to have equal access to their customers. In the UK, that includes BT and Hull's Kingston Communications.

At the moment, residential users and small businesses typically have to dial a 3 or 4 digit code before using alternative long-distance and international services.

Roger Runswick, a director at telecoms consultancy, Schema, said: "What the EU is forcing Oftel to do now is not good for alternative local loop providers. It discourages the build-up of the local loop by the cable companies and Ionica, for example."

A Cable & Wireless Communications spokesman said: "This is a big issue for UK Plc and the whole of Europe. What it comes down to is investment. In the UK, we have a competitive and advanced telecoms infrastructure, but with equal access [CPS] you can have less innovation."

A spokesman for Ionica said the company will be working with Oftel, and will use the consultative paper published by the watchdog this week as a starting point. However, he added: "Our position has always been the same as the UK government's - we doubt whether carrier pre-selection is appropriate for the UK."

Not all alternative operators are so wary. Cable TV and telephone company Telewest said it will consider offering CPS services both in and out of its franchise areas, effectively giving it greater reach.