Cable.co.uk comments on £42m BT fine for breaches of contract
- Telecoms giant BT have been fined a record £42m after cutting compensation payments to other broadband providers for late installations.
- Fine imposed following investigation into the division of Openreach and BT’s Network.
- BT also expected to pay out £300k in compensation to the affected providers.
Tuesday, 27 March 2017: An investigation conducted by Ofcom which ran between January 2013 and December 2014, discovered that BT failed to pay the right amount of compensation when it failed to deliver high-speed Ethernet services on time.
These leased line services are the most common which are used by large businesses as well as mobile and broadband providers, and provide vital links for schools, hospitals and libraries.
Commenting on the findings Dan Howdle, consumer telecoms analyst at broadband advice site Cable.co.uk, says:
“Today's ruling offers insight into just some of the factors contributing to Ofcom's decision to split BT and Openreach into two separate entities. Clearly, being the sole owner of shared infrastructure has given rise to precisely the sort of conflict of interest of which BT has long been accused.
“Customers must never be allowed to become collateral damage in the battle to gain the upper hand in the market. Fines such as this, painful though they are for those on whom they are levied, are vital in maintaining a fair, competitive marketplace in which business can thrive."
Notes to editors
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Dan Howdle has been plugged into the attitudes of UK broadband, TV and mobile customers for over two decades, running research fieldwork both nationally and internationally on behalf of the biggest players in the industry. Dan is now consumer telecoms analyst at Cable, as well as more formally operating in the role of its Director of Communications and Content.
An experienced broadcaster, commentator and writer, Dan has appeared on BBC TV and radio, ITV, Sky and in the national papers. Dan has advised Ofcom on issues surrounding service quality, administered Cable’s Broadband Service Quality Awards and sat on the panel of judges for the Internet Service Providers Association annual awards.