BT faces legal fight with 'big five' telcos

NEWS Five of the UK's biggest telecoms companies are discussing landmark legal action against BT this week for failing to deliver wholesale, unmetered internet access. Sources told silicon.com this week that the telcos - which are thought to include Colt, Cable and Wireless, Energis, Thus and Telinco - have reached a stalemate in their negotiations with BT over flat rate net access on the local loop - a service called Friaco. "A group of telcos intend to bring a court case against BT," one source said, adding: "It is abusing its dominant position." Another source said the telcos have grown increasingly frustrated with BT's plans to include a per minute charge between the local and regional exchange on top of the flat rate charge to the end user. However, the source explained that the sticking point comes down to whether the operators should connect directly to all the local exchanges or just a percentage of them. "There is a consensus among telco's about what is reasonable - the only one that doesn't agree is BT, after all it doesn't need to. I would not be surprised if there is legal action." The news comes as Altavista admitted that delivery of an unmetered service, promised to consumers in March, was hampered by BT. Evan Lovenor, head of distribution at Altavista, said: "BT kept changing the goalposts for its Friaco offering. First it was June, then August, and now it doesn't look like it will be until early next year." Lovenor added: "BT's definition of Friaco doesn't meet what it takes to offer an unmetered service." A BT spokesman said: "The offer is fully compliant with Oftel requirements, and we're continuing to talk to other operators." However, Mike Pullen, partner at law firm DLA, agreed the telcos could have a case against BT. "There probably is a good case for bringing action against BT under the Competition Act," he said.