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PRESS RELEASE

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

In return for using our commentary on UK telecoms issues, we would deeply appreciate a link to https://www.cable.co.uk

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Cable.co.uk is a broadband, TV and phone comparator, unique news source and consumer champion.

Dan Howdle has been plugged into the attitudes of UK broadband, TV and mobile customers for over two decades. Having spent 12 years at the coalface of consumer telecoms research, initiating and running projects both nationally and internationally on behalf of the biggest players in the industry. Dan is now Director of Communications and in-house consumer telecoms expert for Cable.co.uk.

An experienced broadcaster, commentator and writer who frequently appears on BBC TV and radio, ITV, Sky and in the national papers and their websites, Dan leads a team of journalists and communications folk who spend their days researching and reporting on problems faced by UK broadband, TV and mobile customers both on an individual and macro level.

Dan campaigns on many issues currently facing consumers of broadband, TV and mobile products in the UK. These include, but are not limited to: Rural broadband provision; mobile coverage; broadband, TV and mobile customer contract issues; broadband and mobile broadband speeds; switching and money-saving; infrastructural challenges; pricing, changes and structures; shifts in technology and the marketplace; telecoms regulation, policy and law; fines, adjudications and policy changes; mergers and closures of UK providers; annual financials and more.

Dan has advised Ofcom on issues surrounding service quality. He also administers and adjudicates the yearly Broadband Service Quality Awards and sits on the panel of judges for the Internet Service Providers Association annual awards.

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