BT could initiate legal challenge over Ofcom’s wholesale charge stance

18 Nov 2010

British fixed line incumbent BT has said that it could initiate legal proceedings against the country’s telecoms regulator, Ofcom, after the latter refused to allow the operator to increase wholesale prices to help repair its pension deficit. According to the Financial Times, BT’s chief executive officer Ian Livingston has said the company will take a ‘very serious look’ at its legal options should Ofcom not agree to the fee increase, claiming that the regulator’s decision was wrong. ‘We think it [allowing an element in charges] is consistent with how other regulated industries are treated and it’s also the fair and right thing to do,’ the executive said. For its part, in July 2010 Ofcom said that there was no evidence to support BT’s request to include a portion of the cost of reducing the deficit in wholesale charges levied by its infrastructure arm, BT Openreach. Ofcom is now expected to confirm its position on the matter next month.

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