Carphone bemoans BT’s proposed LLU price hikes

14 Apr 2008

In an interview with the Financial Times, the CEO of Carphone Warehouse has strongly criticised BT’s plans to increase its local loop unbundling (LLU) pricing, partly because BT’s past performance in handing over control of fixed lines to Carphone had been ‘an absolute shambles’. British telecoms regulator Ofcom is expected to open consultations on whether to let BT increase LLU fees – currently set at GBP6.67 (USD13.34) – next month. If Ofcom agrees to a significant price rise, it would give a much needed boost to BT, which has seen its share price fall almost 30% since November. But any price rise could badly dent the profitability of Carphone and others involved in LLU, such as BSkyB and Tiscali. BT has said that it is confident Ofcom will make ‘the appropriate adjustment’ to enable its infrastructure unit Openreach to realise a 10% financial return agreed with the regulator.

United Kingdom, BT Group (incl. Openreach), TalkTalk