British regulator pushes ahead with BT margin test

LONDON, March 19 (Reuters) - British telecoms regulatorOfcom is to push ahead with a plan to monitor the price BT charges rivals to access its superfast fibre networkafter taking on board concerns from the European Commission.

Peers such as TalkTalk have long complained that BTovercharges for wholesale access to its infrastructure, helpingit fund additional services such as sports programming which itgives to customers free as part of a broadband bundle.

Ofcom had set out a plan in January to apply amargin-squeeze test on BT, that would measure the gap betweenthe wholesale price it charges rivals and the retail price itcharges its customers, to make sure there was a sufficientmargin for competitors to make a profit from the infrastructure.

But the European Commission voiced concerns, saying thecompany should be given more flexibility in how it covers itscosts, including football rights.

Ofcom said on Thursday it would push ahead with the testfrom April 1, after clarifying how it would take into accountthe way BT charges for sports.

It said BT would currently pass the test, but the new rulewould be a safeguard that ensured that any increases in BT'scosts must be reflected in its prices.

(Reporting by Kate Holton, editing by Paul Sandle)