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LONDON (Alliance News) - UK telecoms regulator Ofcom Thursday confirmed a new rule requiring BT Group PLC to maintain a sufficient margin between its wholesale and retail superfast broadband prices, although it will not be imposing any changes to BT's prices at this time as it is currently meeting the requirements of the new rule.
BT is required to allow other operators to use its network to sell broadband to customers, and the new rule is intended to make sure that competitors can match BT's own broadband prices profitably.
However Ofcom's indicative assessment of the market shows BT's margin is sufficient under the new rule, so as such it is considered a "safeguard" to stop BT reducing retail margins in the future, and makes sure that increases in BT's costs are reflected in its prices.
Ofcom noted BT's entrance into the sports content market via the launch of its BT Sport service, and that BT currently provides this service free to its superfast broadband customers, saying the new rule takes into account the costs and revenues of the sport channels as well as other elements BT includes in its superfast broadband bundles.
The regulator said it is confirming the new rule after receiving comments from the European Commission, and clarified that it will take into account changes to how BT distributes and charges for its sport content including the Champions League.
The new rule will apply from the beginning of April.
Shares in BT are trading up 0.4% at 460.40 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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