Home
 » ISP News » 
Sponsored

Ofcom Fines BT UK £95m for Overcharging on Wholesale Ethernet Services

Saturday, December 22nd, 2012 (7:51 am) - Score 2,033

A two year legal battle between BT and several major ISPs has finally ended with Ofcom forcing the national UK telecoms operator to pay a fine of £94,823,000 after it was found to have overcharged the broadband providers for Backhaul Extension Services (BES) between 2004/6 and 2011.

BTOpenreach states that Backhaul Extension Services are “high speed, permanently connected, point-to-point data circuits” that provide a secure link between a telephone exchange and an ISP or between an exchange and another exchange (Daisy Chain). Internet providers often used BES for connecting unbundled (LLU) exchanges with their own networks, although for obvious reasons the original product has since been replaced.

Ofcoms Statement

We have concluded that BT has overcharged the parties a total of £94,823,000 for certain wholesale Ethernet services and that BT is required to make repayments for the full amounts by which it has overcharged them.”

The move means that TalkTalk, Virgin Media, Sky Broadband (BSkyB), Verizon UK and Cable & Wireless (CW) should be set to receive a nice repayment in the not too distant future. However BT, which not so long ago lost a related battle in the Court of Appeal (CAT), hasn’t given up just yet.

A BT Spokesperson said:

We have provided evidence to Ofcom that shows we complied with our regulatory obligations and that we kept them informed of our pricing decisions throughout the period being disputed. The market for Ethernet services has grown strongly over the period and there is no evidence of economic harm to support Ofcom’s findings.”

BT said it was “disappointed” and refuted Ofcom’s findings. The operator said that it would now move to consider all of its options and has threatened to launch another appeal.

On the surface this may seem like a victory for Ofcom and the ISPs, yet it could be another story for consumers. BT has a nasty habit of recovering any lost monies by simply hiking prices in other areas.

Indeed excessive price increases for Phone Line Rental and Calls, which often go well above the normal level of inflation, have become an all too common occurrence and often appear to follow such rulings.

The related documentation suggests, in our own view, that any appeal by BT to the relevant competition authority would need to be lodged before 21st February 2013.

Leave a Comment
5 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
  • Hyperoptic £22.00
    Speed: 158Mbps, Unlimited
    Gift: None
  • Virgin Media £24.00
    Speed: 108Mbps, Unlimited
    Gift: None
  • Vodafone £25.00
    Speed: 100Mbps, Unlimited
    Gift: None
Large Availability | View All
Cheapest Superfast ISPs
  • Hyperoptic £17.99
    Speed 33Mbps, Unlimited
    Gift: None
  • Shell Energy £19.99
    Speed 35Mbps, Unlimited
    Gift: None
  • NOW £20.00
    Speed 36Mbps, Unlimited
    Gift: None
  • Virgin Media £20.00
    Speed 54Mbps, Unlimited
    Gift: None
  • Vodafone £22.00
    Speed 38Mbps, Unlimited
    Gift: None
Large Availability | View All
The Top 20 Category Tags
  1. FTTP (4114)
  2. BT (3151)
  3. Politics (2117)
  4. Building Digital UK (2026)
  5. Openreach (1969)
  6. FTTC (1922)
  7. Business (1833)
  8. Mobile Broadband (1605)
  9. Statistics (1510)
  10. 4G (1378)
  11. FTTH (1371)
  12. Virgin Media (1277)
  13. Ofcom Regulation (1241)
  14. Fibre Optic (1234)
  15. Wireless Internet (1233)
  16. Vodafone (926)
  17. EE (905)
  18. 5G (898)
  19. TalkTalk (821)
  20. Sky Broadband (787)
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