B.T. announced today that it has major concerns regarding OFCOM’s proposal to lower the cost of its wholesale Leased Line rental. OFCOM are currently seeking to reduce the price at which BT can sell access to its leased lines down by 8-16%.
This is a major advantage to B.T.’s competitors who rent access to the leased lines in order to provide services to business broadband customers but a problem for B.T. that could face large profit losses if the new proposals go ahead. Over the years B.T. has invested heavily in its infrastructure to provide a good standing for its future and build up a network that rival companies find hard to compete against. OFCOM imposed rules to prevent the monopoly of the network in the UK and forcing B.T. to rent its network out at set costs that allow third parties to offer competitively priced products to end users.
B.T. intend to take its concerns to OFCOM with the objection that after investing in the UK’s broadband network so heavily over the years it should have the ability to make profit for its shareholders and provide funding to re-invest in the future of the UK telecoms network.
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