Home
 » ISP News » 
Sponsored

BT Challenge Ofcom UK Decision to Cut its Wholesale Broadband Prices

Saturday, August 25th, 2012 (8:08 am) - Score 1,123

The Competition Commission (CC) is to investigate Ofcom’s March 2012 decision to cut the annual price of BT’s Wholesale Line Rental (WLR) and Unbundled (LLU) broadband and telephone lines for rival ISPs, such as TalkTalk and Sky Broadband.

Ofcom originally ruled that BT’s own valuation of the charges did “not represent a reliable estimate” and called for the related prices to be slashed, which would have resulted in rival ISPs paying less for BT’s phone and broadband services. The differences weren’t big enough to have much of an impact upon smaller ISPs but the biggest providers, with millions of customers, certainly stood to benefit.

Under these changes the annual cost of a fully unbundled line (MPF) would have fallen from £91.50 +vat to £87.41 for financial year 2012/13, while a shared unbundled line (SMPF) would have fallen from £14.70 to £11.92 over the same period. Likewise BT’s own Wholesale Line Rental (WLR) also took a hit, going from £103.68 to £98.81. All the changes were due to be introduced from 1st April 2012.

At the time BT said they “disagree with some of [Ofcoms] underlying assumptions” and followed this up by lodging an appeal with the Competition Appeal Tribunal (CAT), the details of which were first revealed in May 2012. Both Sky Broadband and TalkTalk were then (31st May) granted permission to intervene in the BT appeal, while BT was similarly granted permission to intervene in the Sky/TalkTalk appeal that related to the same “charge controls” and even Everything Everywhere (Orange UK and T-Mobile) has muscled in on the action. Tit-for-tat.

The Competition Appeal Tribunal has now referred the price control matters in the BT appeal to the Competition Commission (CC) for determination by 29th March 2013. The move comes shortly after the Court of Appeal largely rejected another BT appeal (here) against an Ofcom ruling that found the operator had charged rival ISPs too much for access to its network (i.e. Partial Private Circuits – trunk segments market).

Meanwhile Ofcom has most recently proposed new controls that will “lead to [a] real-terms price reduction” of BTWholesale’s Leased Line services (here and here), which BT has already expressed “concerns” about. By contrast BT’s rivals tend to complain that Ofcom still isn’t being strict enough with BT. Credits to OUT-LAW for the heads-up.

Leave a Comment
5 Responses
  1. Avatar Deduction says:

    Excellent looking forward to seeing them get beaten up by the competition commission AGAIN.

    1. Avatar New_Londoner says:

      Fine, but don’t complain about lack of competition is the UK wholesale markets – constant downward price pressure by Ofcom will discourage new entrants, more investment.

  2. Avatar Deduction says:

    There is no real wholesale competition anyway. The likes of BE/O2, Talk Talk and C&W as a few examples of providers that wholesale have to buy from BT in the first place anyway. So the cheaper the better for them.

    1. Avatar Curious says:

      What do you mean ‘have to buy from BT in the first place anyway’? The only payment they make to BT is for the ‘last mile’ copper rental to transmit the service.

    2. Avatar Deduction says:

      No it is not, you are totally wrong. For starters theres costs to place their own LLU equipment in the exchange, and thats before they supply anyone with anything.

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 Superfast ISPs
  • NOW £22.00 (*32.00)
    Speed 36Mbps, Unlimited
    Gift: None
  • TalkTalk £22.00 (*29.95)
    Speed 38Mbps, Unlimited
    Gift: None
  • Vodafone £22.00 (*25.00)
    Speed 35Mbps, Unlimited
    Gift: None
  • Hyperoptic £22.00
    Speed 50Mbps, Unlimited
    Gift: Promo Code: EASTERSALE
  • xln telecom £22.74 (*47.94)
    Speed 66Mbps, Unlimited
    Gift: None
Large Availability | View All
New Forum Topics
Cheapest Ultrafast ISPs
  • Gigaclear £24.00 (*44.00)
    Speed: 100Mbps, Unlimited
    Gift: Offer Code: SPRUCE20
  • Vodafone £26.00 (*29.00)
    Speed: 100Mbps, Unlimited
    Gift: None
  • Virgin Media £28.00 (*44.00)
    Speed: 108Mbps, Unlimited
    Gift: None
  • Hyperoptic £29.00 (*35.00)
    Speed: 150Mbps, Unlimited
    Gift: Promo Code: EASTERSALE
  • TalkTalk £29.95 (*39.95)
    Speed: 145Mbps, Unlimited
    Gift: None
Large Availability | View All
The Top 20 Category Tags
  1. FTTP (3161)
  2. BT (2909)
  3. Building Digital UK (1844)
  4. FTTC (1844)
  5. Politics (1822)
  6. Openreach (1736)
  7. Business (1577)
  8. Mobile Broadband (1367)
  9. FTTH (1355)
  10. Statistics (1336)
  11. 4G (1176)
  12. Fibre Optic (1123)
  13. Wireless Internet (1097)
  14. Virgin Media (1091)
  15. Ofcom Regulation (1087)
  16. EE (776)
  17. Vodafone (769)
  18. TalkTalk (730)
  19. Sky Broadband (711)
  20. 5G (657)
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