Regulator tells BT to slash competitors' bills
BT watched its stock rise, despite a
hardline ruling from regulator
Ofcom saying it must slash the rate
it charges rivals to use its copper
telephone and broadband network.
Ofcom ruled that BT’s wholesale
division Openreach should cut
prices by up to 19 per cent from April,
providing a boost for companies
which pay to use the network such
as Sky and Talk Talk.
Under the pricing settlement, due
to be finalised within a month, rivals
would pay 4.5 per cent less for combined
broadband and telephone bundles,
at 87.41.
Ruling: BT said it was considering whether to challenge the decision in Europe
The cost of a broadband line
without telephone connection will
drop by 18.9 per cent to 11.92 per month,
with further falls to follow next
year. BT (up 2p to 216p) said it was
considering whether to challenge
the decision in Europe.
It questioned Ofcom’s calculations
and said the ruling threatened its
ability to get a ‘fair rate of return’
as it invests in infrastructure
upgrades.
‘Whilst the prices are within the
range outlined by Ofcom in
November, we disagree with some
of the underlying assumptions that
they have used to determine these
charge controls,’ it said.
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