UK telecommunications regulator Ofcom has started an investigation into BT’s dominance in the broadband market following a complaint from TalkTalk Telecom Group.
TalkTalk alleges that BT has failed to maintain a sufficient margin between its upstream costs and downstream prices.
Ofcom said it will investigate whether BT has abused a dominant position under UK and/or European Union (EU) competition law.
A spokesman for TalkTalk said: "We have long maintained that there needs to be tighter regulation in superfast broadband to ensure a level playing field and therefore deliver real benefits for consumers and businesses.
"We are pleased that Ofcom is taking this matter seriously and have decided there is reasonable suspicion to investigate BT’s fibre pricing," spokesman said.
BT said it is disappointed that Ofcom has opened the case without any evidence.
"It would be better if the industry’s and Ofcom’s focus was on investing in the future of the country rather than on spurious actions designed to hold up fibre in the UK," BT said.
