Ofcom are to look into if BT need to reduce the price of their wholesale superfast fibre optic broadband prices after claims that they were charging rivals too much for use of their network.
In May last year TalkTalk complained to Ofcom that BT were abusing their dominant position when setting prices for wholesale fibre optic broadband and now a report in the Financial Times claims that the communications regulator will launch a consultation into the price’s of BT’s wholesale fibre optic pricing which is to be done before the end of May.
Redburn Partners, who are an equities partner told the Financial Times that:
“We think Ofcom’s margin squeeze test could reduce BT wholesale fibre prices by at least £2 per month initially, with ongoing monitoring potentially leading to further cuts.”
BT are naturally not going to be pleased with Ofcom doing their investigation, especially if it does result in Ofcom agreeing with TalkTalk’s complaints and making BT Openreach reduce the wholesale prices if charges competitors for access to its fibre network.