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Author Topic: BT faces tough new broadband tests  (Read 465 times)

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Offline Jay9

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BT faces tough new broadband tests
« on: 15 January 2015, 15:18:40 »

BT could be forced to raise broadband prices or slash the charges for rivals to use its network under tough tests being proposed by regulator Ofcom.

The new rules are designed to ensure that BT cannot price rivals such as Sky and TalkTalk out of the market.

Currently Ofcom judges that BT's retail and wholesale prices comply with the new test.

The telecoms firm said the test was "misconceived". It is unhappy about the scope of future tests.

Previous regulation required BT to allow rival operators to use its network to sell superfast broadband to consumers. The process is known as "virtual unbundled local access" (Vula). Some 3.4 million superfast broadband connections in the UK are currently offered under this agreement.

In order to allow rivals to be able to make reasonable profits, there needs to be a sufficient gap between the price BT charges them to use its network and the retail price at which BT sells its own broadband services.

Ofcom has decided that regular tests are required "to ensure that other communication providers have sufficient margin to be able to compete with BT in the provision of superfast broadband packages to consumers".



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