Better this regulator than no regulator at all

This later argument was perhaps best summed up by Ovum analyst, John Moroney. Speaking on today's Behind the Headlines, he said: "In the 1980s there was a lot of fat in the industry. Back then BT and Oftel understood that there was a game to be played in which BT first rejected and then reluctantly gave into Oftel's demands."

Today, competitive forces are a better regulator of BT's activities than any watchdog.

This line of thinking will find favour with those who subscribe to the "let the market decide" mantra of laissez-faire economists, but it simply doesn't wash in the telecommunications industry. And that's because the telecommunications industry features one rather large and significant anomaly - BT.

The continued presence of a one-time, state-run monopoly sits awkwardly in a 'wannabe' competitive market. BT's former status means it not only claims to be a telephone and internet provider to business and consumers, but effectively owns and controls the communications infrastructure its rivals use to compete with it in all four of these areas.

Far from encouraging BT to unbundle the local loop and provide wholesale pricing to rival ISPs, competitive forces dictate that the company should preserve the status quo. BT boss Sir Peter Bonfield may be public enemy number one, but by making life tough on his rivals he is doing the right thing by his shareholders.

It is undoubtedly true that Oftel has failed to ensure BT meets its unbundling deadline and has failed to actively encourage competitive internet pricing. It's also true that MPs were right to call David Edmonds to account, even if they had one eye on constituents eager to observe a bit of BT bashing.

Nevertheless, Oftel's shortcomings aren't a good reason to do away with it. Until BT's self interest and the market's best interest coincide, somebody is going to need to give our favourite telco a helping hand.

Earlier this week we posed the question: "Has Oftel reached its nadir?". That was the day before its Select Committee grilling. Three days later our answer is still the same: Oftel is far from perfect but it's the best check on market imbalances we've got.