Telecoms watchdog Oftel has come under fire from a committee of MPs for failing to stimulate competition in the market.

In its report, the Commons public accounts committee argued that Ofcom, which has now replaced Oftel, should encourage customers to switch telecommunications suppliers.

"Many customers are not getting as good a deal as they could on their telephone bills," said chairman of the committee and Conservative MP for Gainsborough Edward Leigh.

"They could save money by either switching supplier or changing their tarrif.  It is unacceptable that BT retains around 70 per cent of the total market 20 years after privatisation."