Ofcom proposes fibre profitability rules

19 Jun 2014

The UK’s telecoms regulator, Ofcom, has proposed rules which would require fixed line incumbent BT to set wholesale fibre prices at a sufficient margin relative to its retail charges, reports Reuters. The move is aimed at allowing rival internet service providers (ISPs) such as TalkTalk and BSkyB to profitably match BT’s prices. ‘Today’s proposals preserve pricing flexibility, while seeking to ensure that BT does not set prices in such a way that prevents other operators from competing profitably for superfast broadband customers,’ said the watchdog.

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