The European Commission (EC) has blasted Ofcom’s plans to monitor BT’s pricing structure for access to its network.
Ofcom had submitted a draft proposal to the EC in January, with plans to apply a margin-squeeze test to BT. The new proposal would require the UK telecoms provider to keep a "sufficient" margin between its wholesale and retail superfast broadband charges, in order to allow other providers to profitably match its prices.
However, in a letter to the British telecoms regulator today, the EC claimed that Ofcom’s test was inflexible and didn’t take into account BT’s additional costs for BT Sports. It also argued that the approach overly limited BT’s commercial activity.
BT welcomed the news from the EC.