LONDON -- Ofcom published today its annual report into BT Group plc (BT)'s compliance with the Undertakings it agreed with the regulator in 2005 and the wider impact of the Telecoms Strategic Review.

The report highlights the real progress that has been made to date but also the areas where further action can offer benefits to U.K consumers.In particular, Ofcom is now proposing new incentives for Openreach to improve the quality of the service that it gives to other communications providers.

Impact of the Telecoms Strategic Review

Ofcom's report shows that the regulatory approach set by the Telecoms Strategic Review (completed in 2005) has contributed to significant changes in the UK telecoms market since then. For example:

* Lower prices: average broadband prices in 2006 were down by two thirds on 2005;

* More choice: 60% of UK consumers can choose between four or more providers and more than 10m use a telecoms provider other than BT, and

* More switching: in 2006, 8% more customers switched fixed telephone line and 5% more customers switched broadband provider than in 2005.

Ofcom