How has deregulation of the market affected my Telecom Bill?

DARTFORD, U.K. - July 13, 2015 - PRLog -- The telecoms industry is bursting with supposed deals and offerings to potential customers, with providers continuously trying to outdo one another with the ‘cheapest telecoms deals on the market!’ But did you know there was a time before this; when only one name ruled on the market?

Back in the 80’s, BT dominated the telecoms market - Mainly because their only competitor was themselves. There was no competition from other service providers, so this allowed BT to cap prices at whatever they wanted, without fear that customers would change to another provider.

After much outcry and realisation from the British government that this was incredibly unfair, in 1984 a ‘duopoly policy’ was introduced in telecommunications which allowed the entrance of another provider, Mercury. Despite this introduction, British Telecom was still the dominant player.

The government knew that a real change had to happen within the industry, and so allowed other firms to enter into telecoms to provide more competition to BT; not only on price, but also the introduction of new innovations and infrastructure. Deregulation scrapped the price cap regulation on British Telecom which meant that the company had to depend on normal forces of demand and supply to determine the prices of their products and services.

Ultimately from deregulation, three positives can be noted. Competition was increased, meaning that consumers are offered a variety of exciting and attractive offers from a multitude of telecoms providers, giving the customer control of their service provider. Another positive is that prices dramatically dropped, this influx of competition means, of course that telecoms providers must offer a competitive rate or be pushed out of the market. Finally service levels increased, telecoms providers want to keep their customers and so increase their customer service to ensure the relationship which is built between provider and customer is sustained.

Stuart Griffiths, CEO of True Telecom comments “Deregulation of the market was a revolutionary step forward for the telecoms industry. As a result of this, True Telecom can now offer some of the lowest available rates on the market, alongside first rate customer service, making us a top choice those looking at cutting costs, without cutting corners.”