LONDON--The U.K. Office of Communications, or Ofcom, said Wednesday it has notified the European Commission of its draft decisions on the fixed narrowband market review that fixed retail calls markets in the U.K., excluding the Hull area, remain effectively competitive as no company holds a position of 'significant market power'.

MAIN FACTS:

-Ofcom has provisionally concluded that BT Group PLC (BT.A.LN) has significant market power, or SMP, in the wholesale market for call origination in the U.K., excluding the Hull area, and in fixed call termination and has proposed remedies including charge controls on BT in these markets, as well as in the provision of interconnect circuits.

-Ofcom's draft decision is that KCOM Group PLC (KCOM.LN) has SMP in the wholesale market for call origination in the Hull Area, and has proposed a series of remedies as well as the provision of interconnect circuits.

-In relation to providers of fixed call termination other than BT, including KCOM, Ofcom has provisionally concluded that each provider has SMP, and has proposed a requirement to provide network access on reasonable request and a requirement to notify charges.

-Subject to review by the Commission, Ofcom expects to publish its final statement before the end of September.

-Write to Ian Walker at ian.walker@wsj.com

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