{"id":13869,"date":"2017-05-05T13:41:01","date_gmt":"2017-05-05T12:41:01","guid":{"rendered":"http:\/\/www.ispreview.co.uk\/?p=13869"},"modified":"2017-05-05T13:44:42","modified_gmt":"2017-05-05T12:44:42","slug":"bt-lose-appeal-ofcom-demand-22m-ethernet-interest-payment","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2017\/05\/bt-lose-appeal-ofcom-demand-22m-ethernet-interest-payment.html","title":{"rendered":"BT Lose Appeal Over Ofcom Demand for \u00a322m Ethernet Interest Payment"},"content":{"rendered":"

After years of fighting, the Court of Appeal has rejected BT<\/a>’s most recent attempt to stop a ruling by Ofcom<\/a> over the rate of interest payable in respect to their past overcharging for Ethernet services, which could force them to pay \u00a322m+ to rivals. Next stop.. Supreme Court?<\/p>\n

The problem itself goes all the way back to the 2006-2011 period and Ofcom<\/a> appeared to have reached a conclusion in June 2015, when they ruled that BT<\/a> had overcharged for business Ethernet (Backhaul Extension Services<\/strong>). This initially required them to repay \u00a394m+<\/strong> to Sky (Sky Broadband<\/a>), TalkTalk<\/a>, Virgin Media<\/a>, Cable & Wireless Worldwide (Vodafone<\/a>) and Verizon (here<\/a>).<\/p>\n

At the time Ofcom<\/a> decided as follows..<\/p>\n

Ofcom’s Provisional Conclusions on the Remitted Matters<\/strong><\/span><\/p>\n

1.7.1 Adjusting for the ECC overpayment, the correct amount of principal overcharge by BT<\/a> is \u00a394,620,000.<\/p>\n

1.7.2 The corrected figure above takes account of the repayment that BT is entitled to in respect of the exclusion of ECCs of \u00a3203,000.<\/p>\n

1.7.3 The interest on the corrected principal overcharge payable by BT is \u00a322,422,000.<\/p>\n

1.7.4 The net amount which BT should repay to the Disputing Parties (i.e. the interest less the ECCs adjustment) is \u00a322,219,000; and<\/p>\n

1.7.5 From 29 December 2012, BT should pay interest on the net amount due to the Disputing Parties at a rate of BoE+1%.<\/p>\n

1.8 From 29 December 2012, BT is entitled to interest on the ECC overpayment. By calculating a net amount due to the Disputing Parties, and allowing for interest on that net amount only, BT\u2019s entitlement has been given effect to in these Provisional Conclusions.<\/p><\/blockquote>\n

Shortly after that the Court of Appeal granted BT permission to dispute a related judgement by the Competition Appeal Tribunal<\/strong> (CAT), with the telecoms giant asking the court to “consider whether Ofcom has power to award interest in resolving a dispute<\/em>.” Yesterday the court finally came back to uphold CAT’s judgement and Ofcom has thus printed their Final Determination<\/a>.<\/p>\n

However the case might not be over just yet because a spokesperson for BT has said that the operator plans to review the judgement before deciding “whether we appeal to the Supreme Court<\/em>.”<\/p>\n","protected":false},"excerpt":{"rendered":"

After years of fighting, the Court of Appeal has rejected BT’s most recent attempt to stop a ruling by Ofcom over the rate of interest payable in respect to their past overcharging for Ethernet services, which could force them to pay \u00a322m+ to rivals. Next stop.. Supreme Court?<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[474,472,478,36,66,74,475],"class_list":["post-13869","post","type-post","status-publish","format-standard","hentry","category-uk_isp_news","tag-bt","tag-business","tag-ethernet","tag-ofcom-regulation","tag-sky-broadband","tag-talktalk","tag-virgin-media"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nBT Lose Appeal Over Ofcom Demand for \u00a322m Ethernet Interest Payment - ISPreview UK<\/title>\n<meta name=\"description\" content=\"After years of fighting, the Court of Appeal has rejected BT's most recent attempt to stop a ruling by Ofcom over the rate of interest payable in respect\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2017\/05\/bt-lose-appeal-ofcom-demand-22m-ethernet-interest-payment.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BT Lose Appeal Over Ofcom Demand for \u00a322m Ethernet Interest Payment - 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