Feeds

BT ordered to pay £95m to rivals it overcharged for FIVE years

Backhaul rates unjustified, rules Ofcom

The Essential Guide to IT Transformation

BT overcharged its rivals £95m between 2006 and 2011 - and will pay the excess back to TalkTalk, Virgin Media and others following an Ofcom probe.

There were three investigations in total: one was triggered by Verizon UK, another by Cable & Wireless and the third by an aggregation of ISPs including TalkTalk and Sky.

They all claimed that since April 2005 BT overcharged for its Backhaul Extension Service (which connects unbundled exchanges to an ISP's network) and Wholesale Extension Service (connecting bits of the network together), both of which are provided by BT for a one-off fee and ongoing rate, and it's this rate that Ofcom feels was exceeded.

Not that the communications watchdog jumped to that conclusion; its investigation started in September 2010 and involved appeals and counter appeals as well as additional evidence from BT as it sought to justify the charges.

And it's not over yet.

"We are disappointed with Ofcom's determination that we overcharged," the national telco told us in a statement. "We are considering all options available other us, including appealing."

Ofcom issued a draft decision eight months ago, and this final ruling is much the same so it isn't that much of a surprise. BT is keen to point out that it has the money stashed away just in case it loses or decides against prolonging the process any further. ®

Build a business case: developing custom apps

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
Trying to sell your house? It'd better have KILLER mobile coverage
More NB than transport links to next-gen buyers - study
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.
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.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.