Oftel comes under fire for lack of skill

Telecoms watchdog Oftel is inadequately staffed and too poorly funded to keep the UK's telcos in check, according to MPs.

A Public Accounts Committee (PAC) report published today warns that dominant telecoms companies have "considerable resources and expertise at their disposal", but Oftel lacks sufficient numbers of highly trained senior employees with the necessary background in the commercial sector. The result is that small businesses and consumers frequently suffer because of the anti-competitive behaviour of these companies.

Conservative MP David Davis, chairman of the Committee of Public Accounts, commented: "Regulation can only be effective where the skills of the regulator match those of the regulated. Since the industry has so many more resources than the regulator, the quality, experience and training of the regulator's staff are of paramount importance. In such 'David and Goliath' situations, we need to make sure that David is well-armed."

The PAC's report supported Oftel's attempts to become more proactive in investigating impropriety by UK telcos, and added its voice to Oftel's calls for carriers to adopt clearer call tariff pricing.

Oftel responded by saying it "warmly welcomes" the report, and would take it into account. The regulator is in the middle of a review process, the results of which will be known in the autumn.

David Brown, chairman of telecoms consultancy Schema, commented: "Compared with what's happened in other European countries, and the state of play with other British industries, Oftel has done a pretty good job. Skills in the telecoms sector are always in demand, and there's no reason why that shouldn't also affect Oftel."