It's been a bad day for Oftel, but has it reached its nadir?

Why does Oftel give BT such as easy ride? Why has the UK telecoms market - once lauded as the most deregulated in the world - suddenly been caught and even overtaken by our European cousins? Why is it taking so long to make unmetered internet access a commercially viable reality?

European requirements dictate that the local loop be unbundled by 1 January 2001. Oftel says the middle of next year is fine. BT once claimed wholesale access to the local loop at £107 will only just cover costs. Oftel promptly upped it to £118.

Decisions like these have hardly endeared the regulator to the people it is supposed to protect.

But it seems Oftel may have got wind that it was in for a stormy reception at the Select Committee. Just yesterday, it issued a consultation document which hints at a new 'get tough' approach on unmetered net access.

In it, the regulator states that BT must provide a flat rate tariff structure for other operators by February. Cynics would suggest that was a move aimed at heading off the worst of the criticism. If it was, it was only partially successful.

The chair of the committee, Martin O'Neill MP, still slammed Oftel today, accusing it of laziness and complacency. Mobile pricing is still not clear enough for consumers and leased line pricing is still unrealistically high.

At last, pressure is being brought to bear to bring an end to Oftel's bureaucratic heel dragging. At last, we may be entering a new era, where the government actively monitors the regulator's performance. At last, BT just might not get away with it any more.