Following discussions last week with British Telecom (BT), some U...

on some IPStream products -- packages sold to ISPs which then offer retail services to their customers. BT’s move anticipated a ruling by the Office of Communications (Ofcom) this month, which set a margin between DataStream products -- which allow large ISPs to buy local access from BT but provide connectivity to customers on the ISPs’ networks -- and IPStream. The price increase angered smaller ISPs, which feared it would drive them out of business (CD Aug 16 p4 or WID Aug 16 p3). Last Wed., members of the Internet Service Providers Assn. (ISPA) U.K. met with BT Wholesale Dir.-Products Bruce Stanford. ISPA told Stanford the higher charges -- up to 32% on some IPStream products -- and the fact they can be imposed on only 28 days’ notice “may mean ISPs will be forced to charge significantly more for their services, diminish service levels or even close.” Stanford “listen[ed] sympathetically” and agreed to another meeting later this month, the group said. But the U.K. Internet Federation (UKIF), a coalition of more than 70 small and medium-sized ISPs formed to fight BT’s price increases, remained unconvinced after a Fri. meeting with Stanford. BT has already raised prices by about 7% more than Ofcom’s regulation required, UKIF said; the telco said that can’t be immediately reversed because of another increase in broadband prices resulting from Ofcom’s recent proposals for LLU connection and rental pricing (WID Aug 27 p4 or CD Aug 27 p8)). But UKIF said Stanford agreed to look into adjustments to the broadband prices. UKIF said it’s encouraged by BT’s willingness to consider reducing prices but worried those adjustments might be offset some by Ofcom’s LLU ruling. “The trouble is BT will be treating these 2 adjustments together, which UKIF believes… does not guarantee a reduction in price for IPStream or DataStream products,” the group said. But UKIF said BT is considering the group’s proposal to modify its capacity- based charging model to a usage-based scheme, which could benefit smaller ISPs. UKIF is already lobbying members of Parliament and has set meetings next week with Ofcom and the Dept. of Trade & Industry. It’s also looking into the Ofcom appeals process, it said. BT is committed to reviewing the numbers but thinks it has little wiggle room for adjustment, a spokeswoman said. The margin between IPStream and DataStream prices must be acceptable to Ofcom at all levels, she said, so BT can make changes only if they comply with Ofcom’s margin-squeeze formula. Part of BT’s objective in meeting with ISPs is to explain why it acted as it did, and what it must do to comply with the regulations, she said. Even if adjustments are possible they won’t happen overnight, the spokeswoman said. “But we are talking” to ISPs and understand their position, she added.