Ofcom Goes to Europe to Force BT to Keep its Prices In Check

By Gary Cutlack on at

Comms regulator Ofcom has proposed new regulations to the European Commission that would restrict BT from engaging in broadband price wars -- so its competitors can still make a profit.

Ofcom has been looking into BT's broadband pricing, paying particular attention to the way its Openreach division charges other companies that share its network, such as Sky and TalkTalk.

Ofcom's ruling: "[ensures] that the margin between [BT's] wholesale VULA charges and its retail superfast broadband prices is sufficient for rival operators to compete and make a profit."

The draft plans will now be sent to the European Commission for review, and could come into force in March, standing for two years if approved. While TalkTalk has stated that it is "delighted" by the proposal, BT is arguing that its sports packages (leading Ofcom to consider them a Pay-TV operator comparable to Sky) is unfair. [Ofcom]