BT Broadband prices have recently come under scrutiny by regulator Ofcom which could result in broadband price
rises or a cut in prices for rivals to use its network. The new tests proposed by Ofcom are designed to stop BT pricing rivals like TalkTalk and Sky out of the market.
Currently Ofcom judges that BT’s retail and wholesale prices comply with the new test.
BT has said the test was “misconceived” and are unhappy about future testing under the new rules. Under the new tests BT needs to ensure there is sufficient gap between the price they charge rivals to use its network and the retail price at which they sell their own broadband services.
Ofcom has decided that regular tests are required “to ensure that other communication providers have sufficient margin to be able to compete with BT in the provision of superfast broadband packages to consumers”.
TalkTalk welcomed the decision to regulate the price of broadband. “They [Ofcom] are right to be concerned that BT could abuse its position to undermine competition in superfast broadband. Robust regulation creates a more competitive market that better serves consumers and small businesses,” the firm said in a statement to the BBC.