When British Telecom chose the term Click for its new Internet access service, it was probably meant to indicate that the click of a mouse connects you to the Net without having to set up an account with a service provider. However, with controversy surrounding the service due to be launched next month, the Click sounds more like the lid popping off a can of worms.
The worms in this case are questions about possible anti-competitive behaviour and abuse of a dominant market position.
Any hopes of a smooth launch were scuppered this month by BT's over-enthusiastic telesales staff who targeted sales calls at customers of other Internet service providers (ISPs). This was initially revealed by online news service, Zdnet (www.zdnet.co.uk), which reported that a BT telesales adviser had called a customer to discuss the Friends and Family scheme (where 10 numbers can be nominated for discount). As the conversation went on, the operator noted that the customer was a heavy Internet user, and tried to sell the new Click service.
BT admitted its operator had used billing records to identify the customer's Internet calls, but a spokesman told The Irish Times this was "a one-off case of somebody going off the script". However, Zdnet asked readers to inform it of any similar experiences, and at the time of writing it had complaints of another BT telesales operator employing the same tactic.
Zdnet has forwarded details to the British regulator, Oftel, and BT has confirmed it is now discussing the situation with Oftel.
The Click service involves calls to a special number for Web access only, paid for by an extra 1p per minute on the call charge. There is no need to set up an account, and calls may be made from any phone. But even before the current controversy, the Click service was unpopular among British ISPs. Mr Laurence Blackall, chairman of the Internet Service Providers Association (ISPA) in Britain, said the Click service was BT's attempt "to increase call traffic at the expense of ISP business". He said BT is trying to win back business from ISPs, who get a share of the cost of calls made to them.
Under British legislation, BT's business is split into two sections: its core systems business (running the network) and its supplemental services business (services offered over that network). The supplemental services business, including its existing ISP called BT Internet, buys services from the core business at arm's length prices, i.e. at prices at which other ISPs can buy the same services.
But, to BT's relief, Oftel has deemed the new Click service to be part of BT's core services. However, an Oftel spokesman said it was "strongly investigating" complaints about BT's marketing of the service, as it cannot use its dominance in one market to gain leverage in another. While Oftel has yet to decide on this issue, Mr Blackall, who is also the managing director of Global Internet, is complaining that BT is including ads for Click in monthly phone bills.
Similar issues may arise here as Telecom Eireann, which owns two ISPs, is looking favourably at the Click service. "We are likely to introduce ways in which more customers can be encouraged to go online," a spokeswoman said, adding: "We are looking at this particular one very closely."
Telecom Eireann controls much more of the residential ISP market here than BT does in Britain, but the Office of the Director of Telecommunications Regulation (ODTR) has not split Telecom Eireann's business along the same lines as Oftel has BT's.
Not yet, anyway. An ODTR spokesman said: "The ODTR is currently examining this type of issue in the context of full licensing and liberalisation." However, since Oftel said this split follows from EU competition law, it is fair to speculate that Telecom Eireann may find itself similarly regulated.
The ODTR did confirm, however, that Telecom Eireann has to offer all ISPs the same services at the same prices that it offers to its own ISPs.
