{"id":9792,"date":"2015-07-29T10:26:49","date_gmt":"2015-07-29T09:26:49","guid":{"rendered":"http:\/\/www.ispreview.co.uk\/?p=9792"},"modified":"2015-07-29T10:30:46","modified_gmt":"2015-07-29T09:30:46","slug":"bt-escape-latest-ofcom-uk-fttc-margin-squeeze-test-unscathed","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2015\/07\/bt-escape-latest-ofcom-uk-fttc-margin-squeeze-test-unscathed.html","title":{"rendered":"BT Escape Latest Ofcom UK FTTC Margin Squeeze Test Unscathed"},"content":{"rendered":"

The\u00a0telecoms regulator has re-run its\u00a0FTTC<\/a> \/ VULA “margin squeeze<\/em>” test, which was\u00a0introduced earlier this year as a mechanism for keeping BT<\/a>’s “fibre broadband<\/em>” prices\u00a0fair by ensuring they “maintain a sufficient margin between wholesale and retail … charges<\/em>“, and found that the operator is not in breach.<\/p>\n

<\/p>\n

The test imposes a new Significant Market Power<\/strong> requirement on BT<\/a> to ensure they don\u2019t “set the VULA margin such that it prevents an operator that has slightly higher costs than BT<\/a> (or some other slight commercial drawback relative to BT) from being able to profitably match BT’s retail superfast broadband offers<\/em>” (here<\/a> and here<\/a>).<\/p>\n

Ofcom<\/a>’s test weights a number of different factors, such as the price of the FTTC<\/a> service and the impact of bundling value added features like free BTSport. The regulator is currently reviewing their approach (here<\/a>), although in the meantime they’ve just completed another run using the latest data from BT and once again found that the operator is not in breach.<\/p>\n

Ofcoms Statement<\/strong><\/p>\n

“On 31 May 2015 BT submitted the data necessary for us to monitor BT\u2019s compliance with SMP services condition 14 (Virtual Unbundled Local Access margin control) over the compliance period 1-30 April 2015.<\/em><\/p>\n

At paragraph 1.15 of our statement \u201cFixed Access Market Reviews: Approach to the VULA margin\u201d of 19 March 2015 we explained that following BT submitting its first compliance report, we would issue a statement that informs stakeholders whether or not we have reasonable grounds to suspect non-compliance over the first month assessment.<\/em><\/p>\n

Having carried out a high level assessment, we have no reasonable grounds for believing that BT is contravening, or has contravened, SMP services condition 14 over the compliance period 1-30 April 2015<\/em>.”<\/p><\/blockquote>\n

BT will no doubt feel as if the latest result adds further fuel to their belief that Ofcom<\/a>’s test is “flawed<\/em>” and merely provides “unwarranted regulatory protection<\/em>” to their rivals (e.g. Sky Broadband<\/a> and TalkTalk<\/a>). The operator has already tabled an appeal against the measure with the Competition Appeals Tribunal<\/strong> (here<\/a>).<\/p>\n","protected":false},"excerpt":{"rendered":"

The\u00a0telecoms regulator has re-run its\u00a0FTTC \/ VULA “margin squeeze” test, which was\u00a0introduced earlier this year as a mechanism for keeping BT’s “fibre broadband” prices\u00a0fair by ensuring they “maintain a sufficient margin between wholesale and retail … charges“, and found that the operator is not in breach.<\/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":[474,55,36,69],"class_list":["post-9792","post","type-post","status-publish","format-standard","hentry","category-uk_isp_news","tag-bt","tag-fttc","tag-ofcom-regulation","tag-bt-openreach"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nBT Escape Latest Ofcom UK FTTC Margin Squeeze Test Unscathed - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The\u00a0telecoms regulator has re-run its\u00a0FTTC \/ VULA "margin squeeze" test, which was\u00a0introduced earlier this year as a mechanism for keeping BT's "fibre\" \/>\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\/2015\/07\/bt-escape-latest-ofcom-uk-fttc-margin-squeeze-test-unscathed.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BT Escape Latest Ofcom UK FTTC Margin Squeeze Test Unscathed - 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