The telecoms watchdog Oftel ordered BT to cut the price it charges rival operators for wholesale unmetered internet access by 17 per cent yesterday. The regulator found that the former monopoly operator BT had been charging internet service providers for call routing and call management measures that were not necessary after BT upgraded its network towards the end of 2001.David Edmonds, the director-general of Oftel, said: “BT has made significant improvements to its network since wholesale unmetered internet access was first introduced over three years ago.”At that time, BT included several mechanisms to route internet calls through to the appropriate service provider and call management measures to protect its network from being overloaded. BT’s network can now process Internet call traffic without these additional measures.”The decision is expected to reduce BT’s revenues by up to £17m a year, slightly higher than earlier estimates of £10m-£15m made when Oftel first mooted the price cut four months ago. BT declined to comment on the financial impact of the decision yesterday.However, analysts said that Oftel’s announcement needed to be put into context, noting that revenue from unmetered dial-up internet access genergated about £100m a year for BT out of total revenues of nearly £19bn. This is not a growing revenue stream, as existing unlimited internet customers are migrating to broadband.Other analysts also noted that making broadband services accessible to more users throughout the UK was a key policy of the UK government.BT’s shares closed down 2.5p at 200p, with analysts noting that the decision had been largely factored in by the City..

Stelios Haji-Ioannou, founder of the easy empire, is to appeal to the top European court over claims that his easyCar car rental business breaks the law by refusing to pay customer refunds. The sale of airline and train tickets over the internet or telephone is exempt from the law – introduced to protect customers from hard sell tactics employed by the likes of double-glazing salesmen – as are bookings of hotel rooms, theatre tickets and restaurants.The High Court yesterday granted easyCar the right to appeal to the European Court of Justice, with Justice Terence Etherton concluding that the company had “a pretty good case for reference”.The ruling is a coup for the loss-making easyCar, which would have had to overhaul its business model – based on selling volume in advance – had the OFT decision been upheld. “We would not have been able to continue offering prices as low as we can if we had to give customers a free opportunity to hand back inventory at a late stage in the sales process,” an easyCar spokesman said.Mr Haji-Ioannou is facing an uphill battle with easyCar, which sufferes froma high cost base. Since March, the chief executive and finance director have resigned, leaving Mr Haji-Ioannou running the business. Plans for easyCar to follow easyJet onto the stock market were shelved earlier this year A flotation is unlikely before 2005, the spokesman said.. Hitting business with higher taxes will trigger a cut in jobs if they add to the cost of employing staff, a member of the Bank of England’s rate-setting committee said yesterday. This puts it slightly ahead of the US and the fourth lowest in Europe..

The housing market was hit by a buyers’ strike last month as transactions fell and the stock of unsold properties hit the highest level for almost three years, a new survey showed today. Meanwhile, the number of unsold properties on the surveyors’ books has surged by 34 per cent over the last 12 months to hit its highest level since September 2000. The stock of properties on the market has risen steadily this year, coinciding with a collapse in the number of new buyers entering estate agents’ offices.Prices fell for the third month in a row according to the RICS survey, which found that the number of surveyors reporting falling prices outnumbered those witnessing price rises by 12 per cent in June.The survey echoes a report over the weekend from the Ernst & Young ITEM forecasting unit, which warned of “real stagnation” in the housing market. It said the number of people moving home had fallen to its lowest level since 1996, when the market was still recovering from the aftermath of the early 1990s crash.”We are now seeing real stagnation in the UK housing market,” said Professor Peter Spencer, the unit’s economic adviser.

“There is still some growth outside the South-east but within the M25 house prices are falling, despite the exceptionally low interest rate level.”Anecdotal evidence from surveyors who took part in the RICS report showed a very mixed picture on levels of prices and transactions.In the South-east, where the RICS reported a large jump in unsold properties, surveyors said the market had weakened. “Buyers [are] cautious and very wary of paying what they perceive to be too much,” said Harry St John of Cluttons’ Oxford branch. But in Wales, where the RICS said the number of unsold properties had fallen, agents reported an upturn.However, the RICS said it believed the market would stabilise, noting that the number of new buyers had risen for the first time this year. “Surveyors have interpreted the modest upturn in buyer inquiries positively, expecting some rebound in sales activity in the months ahead,” it said.. MyTravel, the package holiday group, is edging closer to a partial debt-for-equity swap that could give its bondholders a 21 per cent stake in the bombed-out company but secure its future. The progress update prompted the group’s shares to soar by 14 per cent to 37.5p. The stock, which collapsed after a string of profit warnings and the discovery of an accounting black hole, has more than quadrupled since hitting a record low earlier this year.The company has proposed paying back the bondholders in January 2007, three years after the money is due.