BT has reportedly warned Ofcom that its Openreach division, which was created to ensure fair access to its network for all operators, is not making the 10% regulatory return on investment that was promised.

The situation could result in some unbundled ISPs being forced to raise their monthly broadband prices by an additional £3!:


The Times correctly notes that many unbundled providers, such as Tiscali and TalkTalk, would not be able to absorb an increase that large due to slim profit margins. The result could cause a major market shift, with some of the largest providers being forced to raise prices.

In related news it’s emerged that some customers, which have been moved onto a fully unbundled line (does not apply to shared LLU lines) by their ISP, often without being informed, can be forced to stump up £125 if they want to change ISP. The Register reports:


Ofcom is busy investigating both situations, although we can see the first one causing a major upset among BT’s unbundled line using rivals and their customers. We expect to hear a lot more about this over the coming weeks and months.