Home
 » ISP News » 
Sponsored

UK Competition Commission Stop BT Linking Broadband to Pension Payments

Monday, June 25th, 2012 (7:21 am) - Score 693

The Competition Commission (CC) has quietly ruled in Ofcom’s favour by preventing BT from including wholesale broadband charges into its deficit repair payments, which could have forced rival ISPs to pay tens of millions of pounds more in order to help pay down the operators £9bn pension deficit.

Deficit repair payments represent the cash amounts that BT pays to reduce the deficit in the company’s pension fund. So far Ofcom has repeatedly ruled that neither deficit repair payments, nor pension “holidays“, should be taken into account when Ofcom sets BT’s regulated charges (2010 Pension Ruling).

According to the FT, BT last year challenged Ofcom’s ruling and ultimately managed to secure the Competition Commission’s interest. But it’s understood that both Sky Broadband and TalkTalk, which would have been adversely affected by any decision that favoured BT, intervened with the support of an independent pensions consultant, John Ralfe, whom was allegedly able to show that the pension deficit occurred as a result of BT’s own commercial decisions.

A BT Spokesperson said:

Although the Competition Commission agreed with BT on a number of points, it ultimately concluded that Ofcom had not erred in how it applied its regulatory judgment.”

Ofcom said at the end of 2010 that predictability and consistency were important for creating an environment where BT and its wholesale customers could invest, which would have been less attractive had the regulator forced rivals to shoulder more of BT’s own pension deficit costs. Meanwhile BT continues to pay down its deficit, which was partly caused by many more employees taking money out than paying in.

Ofcom’s 2010 Pension Review
http://media.ofcom.org.uk/2010/12/15/ofcom-statement-on-bt-pensions/

Share with Twitter
Share with Linkedin
Share with Facebook
Share with Reddit
Share with Pinterest
By Mark Jackson
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on Twitter, , Facebook and Linkedin.
Leave a Comment
3 Responses

Comments are closed.

Comments RSS Feed

Javascript must be enabled to post (most browsers do this automatically)

Privacy Notice: Please note that news comments are anonymous, which means that we do NOT require you to enter any real personal details to post a message. By clicking to submit a post you agree to storing your comment content, display name, IP, email and / or website details in our database, for as long as the post remains live.

Only the submitted name and comment will be displayed in public, while the rest will be kept private (we will never share this outside of ISPreview, regardless of whether the data is real or fake). This comment system uses submitted IP, email and website address data to spot abuse and spammers. All data is transferred via an encrypted (https secure) session.

NOTE 1: Sometimes your comment might not appear immediately due to site cache (this is cleared every few hours) or it may be caught by automated moderation / anti-spam.

NOTE 2: Comments that break our rules, spam, troll or post via known fake IP/proxy servers may be blocked or removed.
Cheapest Ultrafast ISPs
  • Gigaclear £17.00
    Speed: 200Mbps, Unlimited
    Gift: None
  • Community Fibre £20.00
    Speed: 150Mbps, Unlimited
    Gift: None
  • YouFibre £24.00
    Speed: 150Mbps, Unlimited
    Gift: None
  • Virgin Media £25.00
    Speed: 108Mbps, Unlimited
    Gift: None
  • Vodafone £25.00
    Speed: 100Mbps, Unlimited
    Gift: None
Large Availability | View All
New Forum Topics
Cheapest Superfast ISPs
  • Hyperoptic £17.99
    Speed 30Mbps, Unlimited
    Gift: None
  • NOW £21.00
    Speed 36Mbps, Unlimited
    Gift: None
  • Shell Energy £21.99
    Speed 35Mbps, Unlimited
    Gift: None
  • Vodafone £22.00
    Speed 38Mbps, Unlimited
    Gift: None
  • Plusnet £22.99
    Speed 36Mbps, Unlimited
    Gift: £60 Reward Card
Large Availability | View All
The Top 20 Category Tags
  1. FTTP (4005)
  2. BT (3131)
  3. Politics (2085)
  4. Building Digital UK (2007)
  5. Openreach (1950)
  6. FTTC (1915)
  7. Business (1802)
  8. Mobile Broadband (1585)
  9. Statistics (1484)
  10. FTTH (1369)
  11. 4G (1357)
  12. Virgin Media (1264)
  13. Ofcom Regulation (1226)
  14. Fibre Optic (1220)
  15. Wireless Internet (1218)
  16. Vodafone (919)
  17. EE (899)
  18. 5G (871)
  19. TalkTalk (814)
  20. Sky Broadband (782)
Promotion
Helpful ISP Guides and Tips
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
Sponsored

Copyright © 1999 to Present - ISPreview.co.uk - All Rights Reserved - Terms , Privacy and Cookie Policy , Links , Website Rules , Contact