Predatory pricing (5 December 2000) OFTEL has announced a competition investigation into BT Talk Together, BT's new - and heavily advertised - packages offering unmetered offpeak local voice calls and, in two cases, bundled unmetered offpeak Internet access via BT SurfTime. It is only the packages involving BT SurfTime which are being investigated. OFTEL's rationale for this investigation is that BT could be cross-subsidising unmetered local voice calls by unmetered Internet access, or vice versa, and that cross-subsidy could be considered unfair to others who may want to offer similar packages in the future. The outcome could be a heavy fine if BT is found guilty. We note, in passing, that Kingston Communications, as a local monopoly, is regulated as BT but clearly separates voice and Internet packages. There are two broad viewpoints among the Committee: The OFTEL investigation is justified because BT still shapes and controls the UK telecommunications and Internet markets to an undesirable degree and any erosion of its power is welcome. The investigation is unjustified because the packages are a big step towards what we, and many others, want; if BT is 'doing the right thing' is there any pressing need to worry about future competition for which, at the moment, there is no evidence? However, the first viewpoint prevails; OFTEL has no choice but to step in and investigate an offer of voice and Internet services at a discount. If BT genuinely wanted to reduce costs to subscribers it could reduce the price of individual services. Perhaps BT is hoping that the result of the investigation will be against it ... so that it can complain that it wanted to reduce prices but was stopped by OFTEL?