Feeds

Carphone loses broadband price cut battle

'Good result' all the same

Boost IT visibility and business value

The Carphone Warehouse has failed in its bid to force BT to slash the cost of migrating fully unbundled broadband lines in bulk. The decision by Ofcom means that Carphone will have to shell out more cash to migrate each fully unbundled line than it had hoped, adding to its overheads.

Earlier this year, Opal Telecom (part of Carphone Warehouse) called on Ofcom to resolve a dispute concerning the maximum charge BT can make for the bulk migration of fully unbundled (MPF) and shared access (SMPF) lines.

Fully unbundled lines are where the LLU operator takes full control of a phone line to a home or business providing both a broadband and phone service. Shared access is where the LLU operator provides the broadband connection, but the phone service remains hooked up to BT's network.

In the case of both MPF and SMPF, the maximum amount BT is allowed to charge operators for migrating individual lines in bulk is £34.86 per line.

But in May last year BT Wholesale announced a special promo of £20 per line for the mass migration of shared lines (SMPF). But when the giant telco refuse to match the price for fully unbundled lines Carphone took its complaint to Ofcom.

In its "draft determination" to try and resolve the dispute, published last month, Ofcom ruled that the maximum charge BT should impose for the bulk migration of fully unbundled lines should be £29.06.

In its final word on the subject published recently the regulator reduced the ceiling still further to £27.54. Although it's slightly better news for Carphone, it's still way-off the £20 a throw cost that it wanted.

A spokeswoman for Carphone insisted that it was a "good result" and that the firm was "happy with the outcome". ®

The Essential Guide to IT Transformation

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
What FTC lawsuit? T-Mobile US touts 10GB, $100 family-of-4 plan
Folks 'could use that money for more important things' says CEO Legere
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.