Oftel has issued a ruling today saying that BT can not use detailed information contained in residential customers' bills in order to target its internet access services to particular customers.
This ruling has been made on anti-competitive grounds, Ofcom says, because other companies do not have access to the same information. The watchdog says it will monitor BT closely to ensure it sticks to the rules and that its sales staff will be subject to strict procedures.
BT will, however, be allowed to charge users for access to broadband via their residential bills, market new products by sending information out with bills and conduct market research.
David Edmonds, director general of telecommunications at Oftel, said: "We have published clear procedures on BT's marketing of internet services and use of joint billing to ensure BT does not act anti-competitively. BT must not use billing information from its telephony customers to target its marketing of internet services to residential consumers."
The broadband internet market has taken off after BT was forced to reduce prices. There are now around 600,000 broadband users and around 20,000 new users are signing up to BT, NTL and Telewest every week.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .