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LONDON (Alliance News) - UK telecoms regulator OFCOM Thursday proposed new rules for BT Group PLC, restricting the way it charges operators for wholesale access to its superfast broadband network.
At the same time, it announced that it has provisionally decided to drop TalkTalk Telecom Group PLC's complaint that BT had failed to maintain a sufficient margin between its wholesale and retail prices, as there is "no grounds for action".
Under the new proposals, BT is required to maintain a "sufficient" margin between the rate it charges for wholesale access to its network and the price at which it retails its own superfast broadband services, to allow other competing operators to match its price and make a profit.
Ofcom noted that BT currently provides its BT Sport service free to its superfast broadband customers, and said its new rules would take the costs and revenues of the service into account.
The regulator said that the proposals were intended to ensure competition in the growing superfast broadband market, as according to its research one in four UK homes now has a broadband connection with a speed of 30 megabits per second or more.
Ofcom noted that, at the time that it originally required BT to offer access to its fibre network, there were fewer than 100,000 connections made this way. However, this has risen to 2.7 million, and is expected to increase further over the coming years.
The regulator expects to publish its final statement on the matter later in the year.
Shares in BT were trading up 2.1% at 393.00 pence, while shares in TalkTalk were down 0.2% at 322.30 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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