Telecoms provider wins rightto 'bundle'

LANDLINE, mobile phone and internet services are to be offered together in “bundles” to customers in Hull for the first time after a relaxing of regulations applied to the city’s communications provider KC.

Industry regulator Ofcom said it had lifted rules preventing KC offering the packages to allow a better deal for consumers, but other telecoms firms claim the move will further entrench KC’s dominance of the Hull market.

Unlike other parts of the UK covered by BT, the network infrastructure in Hull is owned by KC, and the costs of buying into its technology to access a relatively small market is seen as prohibitive by other providers.

Bundles, which combine a number of communications products for a single charge, have been available in other parts of the UK for more than a year after Ofcom removed restrictions applied to BT.

The Hull-based Mediasat3, and Leeds firm Nexus Telecommunications, both said KC’s ability to offer bundles would act as a further disincentive to competitors.

But KC commercial and finance director Sean Royce said: “We feel that the undertakings we proposed to Ofcom, and in particular the pricing test that will be applied to our bundles, will ensure that the opportunity still exists for competitors to take wholesale access from us – as they have been able to for many years – and compete with our retail offerings. We are happy to talk further with any interested providers.”