BT accused of moving merger costs to Openreach

BT has been warned by Ofcom after it came to light that the provider paid for its merger with EE using the Openreach division. 

 

BT has been warned by Ofcom after it came to light that the provider paid for its merger with EE using the Openreach division. 

In its latest Business Connectivity Review, the consumer watchdog found that BT had shifted significant costs over to its Openreach division, including part of the £26 million costs for its acquisition of EE.

It emerged from the report that BT had been spreading its costs across all its business, including BT Openreach and BT Wholesale, despite the costs not relating to these services.

Ofcom has deemed this to be unacceptable, and has subsequently given the provider an official warning. 

Speaking as part of the report, Ofcom said that these practises went against regulations in the sector.

“BT attributes these costs across all UK lines of business, including, for example, Openreach and BT Wholesale to which we do not consider these costs relate.”

"We do not consider that this is consistent with the Regulatory Accounting Principle of causality and therefore we consider this attribution inappropriate.”

BT has come under fire from rival broadband providers recently, who claim that BT is too close to the Openreach program.

Providers such as TalkTalk, Sky and Vodafone have all argued that BT should be separated from the Openreach program, in order to allow more competition in the sector. 

This warning is set to cause BT to come under further criticism and heighten the pressure to release Openreach.

Source: Cable

Broadband Speed Test

Find out whether you could be getting faster home broadband speeds. Our speed test will check your current broadband and let you compare with other speeds in your area.

Test your broadband

Contract Renewal Reminder

Our handy broadband contract renewal reminder service will let you know when your contract is coming to an end, so you can look for the best new deals.

Set your reminder

Broadband Usage Calculator

Answer a few quick questions and our broadband usage calculator will give you a data estimate for your household. Using this we’ll recommend the best kind of deal for you.

Calculate
× Need help choosing the best deal?
Call us on 020 4525 0220