Ofcom releases pricing proposals for BT fibre
Ofcom, the UK’s telecoms regulator, has today proposed a set of guidelines for margins that BT will have to uphold when wholesaling its superfast fibre offering to rivals.
The plans are designed to allow other companies to be profitable when reselling the services, despite Ofcom stating in May that it would not regulate prices that BT could charge competitors.
Companies such as TalkTalk and BSkyB are likely bidders for the fibre offering, and Ofcom has now released proposed rules over sufficient margins that will need to be held between BT’s wholesale and retail charges.
“Today’s proposals preserve pricing flexibility, while seeking to ensure that BT does not set prices in such a way that prevents other operators from competing profitably for superfast broadband customers,” said Ofcom.