
BT to be fined £42m for breaching contracts with telecoms providers 26 March 2017
Ofcom investigation finds BT cut its compensation payments for delays in connecting high-speed business lines
These important networks underpin the UK's communications infrastructure
BT has admitted failings, and agreed to compensate the companies affected
BT will be fined £42m for a serious breach of Ofcom's rules, after the company reduced compensation payments to other telecoms providers for late installations.
The penalty is a result of an investigation by Ofcom into BT's network arm, Openreach.
The investigation found that, between January 2013 and December 2014, BT misused the terms of its contracts to reduce compensation payments owed to other telecoms providers for failing to deliver Ethernet' services on time.
Ethernet services are the most common type of leased lines' dedicated, high-speed cables used by large businesses, and mobile and broadband providers, to transmit data. These lines also provide vital, high-capacity links for hospitals, schools and libraries.
Ofcom has taken enforcement action because BT breached rules that address the company's significant market power'. This market power comes from the fact that most telecoms companies rely on access to BT's network to provide services such as broadband to their customers. Ofcom's rules are therefore fundamental in ensuring BT does not act in a way that could harm competition and, ultimately, consumers and businesses.[1]
Gaucho Rasmussen, Ofcom's Investigations Director, said: These high-speed lines are a vital part of this country's digital backbone. Millions of people rely on BT's network for the phone and broadband services they use every day.
We found BT broke our rules by failing to pay other telecoms companies proper compensation when these services were not provided on time. The size of our fine reflects how important these rules are to protect competition and, ultimately, consumers and businesses. Our message is clear we will not tolerate this sort of behaviour.
The investigation
BT is obliged, under Ofcom's rules, to install Ethernet services to its wholesale customers (providers such as Vodafone and TalkTalk), in accordance with its contracts, and to make compensation payments for late delivery. BT's contracts require it to deliver Ethernet services within 30 working days, or pay compensation to the company affected.
If BT encounters problems that require more time to resolve, in certain circumstances it can assume that a customer has agreed to an extension. But Ofcom found that BT did this retrospectively over a sustained period, to reduce the level of compensation it owed to telecoms providers. Not only did this harm other telecoms companies, but it was also likely to have harmed the UK businesses and consumers who rely on high quality, high-speed, broadband services every day.
Ofcom opened the investigation in November 2015. This happened shortly after Vodafone brought allegations to Ofcom that BT had misused its contractual terms through the late delivery of Ethernet services without Vodafone's consent, and by failing to compensate the company for these delays.[2]
Financial penalty and compensationAs a result of these findings, Ofcom will impose a penalty of £42,000,000 on BT.
The penalty incorporates a 30% reduction to reflect BT's agreement to settle Ofcom's investigation by admitting full liability, and to set up a scheme to compensate the telecoms providers that have been affected.[3]
BT must compensate, within twelve months, all the telecoms providers who faced financial loss because of its conduct. We anticipate that BT's customers will engage constructively in the compensation process.
Additional £300k fineBT will also be fined £300,000 for failing to provide information to Ofcom. Through this Ethernet investigation, Ofcom became aware that BT failed to provide accurate and complete information for the original dispute, the Business Connectivity Market Review 2016 and this investigation.
Ofcom takes any breach of our information gathering powers very seriously as such failures undermine the integrity of the regulatory regime. Any company that breaks these rules should expect similar consequences.
ENDS
NOTES TO EDITORS
In market reviews of wholesale business connectivity services, which Ofcom completed in 2008, 2013 and 2016, Ofcom found that BT had a position of significant market power in providing wholesale Ethernet services. Ofcom has imposed regulatory obligations on BT to ensure that communications providers are able to access these services. These obligations are intended to promote competition in particular by facilitating competition in retail markets, enabling providers to compete without needing to invest in a national network.
Vodafone's allegations were in the form of a regulatory dispute submission. Ofcom considered these issues under its dispute resolution powers. Ofcom issued its final statement PDF, 1.2 MB on the dispute between Vodafone and BT in January 2016.
The original level of penalty, prior to the application of a 30% reduction, was £60m. The fine will be paid to Ofcom, and passed on to HM Treasury.
Sectors
Telecoms
Most recent headlines
04/09/2025
Monumental Sports & Entertainment (MSE), in collaboration with Dalet, has been a...
19/04/2025
SDVI, the leading platform provider for cloud-native media supply chains, today announced that the company earned multiple awards at the 2025 NAB Show, with two...
19/04/2025
Ateliere Creative Technologies, a leading GenAI media software solutions company, today announced that Dan Goman has stepped down as CEO and David Bortis, Ateli...
19/04/2025
As Director of Media and Aerial Production at Terrible Herbst Motorsports, Bryan Moore is setting new standards in off-road racing media coverage thanks to his ...
19/04/2025
A next-generation collaboration device that redefines connectivity for meeting environments
Lightware, an industry-leading manufacturer of signal management so...
19/04/2025
Calrec is today announcing that its True Control 2.0 is a Remote Production winner in the 2025 NAB Show Product of the Year Awards. This official awards program...
19/04/2025
Appear, a global leader in live production technology, proudly announces it has been recognised alongside NBCUniversal with the prestigious NAB Show Delivery Pr...
19/04/2025
Deity Microphones, a leader in innovative audio equipment, is proud to announce the expected release of our Ultra-Wide Band IFB to the market. The THEOS DIFB wi...
19/04/2025
A world renowned broadcaster and long-standing LiveU customer has successfully completed a series of live connectivity tests using LiveU's revolutionary, aw...
19/04/2025
BitFire (bitfire.tv), a longtime leader in live video transport, today announced dual NAB Show award wins at the 2025 NAB Show in Las Vegas. The company's M...
19/04/2025
BitFire (bitfire.tv), a longtime leader in live video transport, today announced three major award wins at the 2025 NAB Show, April 5-9, in Las Vegas. The compa...
19/04/2025
AI video discovery company Moments Lab and Satisfaction Group, a leading independent unscripted television production company, are proud to announce a unique st...
19/04/2025
As the media industry navigates the triple challenge of AI-driven production, distributed teams, and skyrocketing content demand, DigitalGlue s creative.space h...
19/04/2025
Network technology startup Miri Technologies Inc. capped off its tremendously successful NAB Show debut by winning two prestigious industry awards for its cutti...
19/04/2025
CINCINNATI Scripp's Nuvyyo USA has concluded a deal with Warner Bros. Discovery to bring 45 FAST channels to Nuvyyo's Tablo TV device....
19/04/2025
In a ruling that could have broader implications on the legality of regulatory agencies levying fines through administrative proceedings, the 5th U.S. Circuit C...
19/04/2025
WASHINGTON Federal Communications Commission chair Brendan Carr has blasted Comcast over MSNBC's coverage of the deportation of Kilmar Abrego Garcia in a so...
19/04/2025
Berklee NYC and NYC Media Launch Season 3 of Inside Power Station @BerkleeNYC This season features faculty member Arun Pandian as the new host and interviews ...
18/04/2025
Director Andrew Ahn, alongside actors Youn Yuh-jung and Joan Chen, takes a photo of the audience after the premiere of his film The Wedding Banquet at Eccles ...
18/04/2025
In a ruling that could have a major impact on the digital advertising market, a federal judge has ruled that Google has monopolized some types of advertising te...
18/04/2025
Broadcast and cable TV news outlets saw strong social media growth in March, according to new data from the social video analytics company Tubular Labs ....
18/04/2025
Berklee Student Yukai Yang Named 2025 Yamaha Young Performing Artist The drummer secured a spot among the elite winners in this years competition.
By
Maddie...
18/04/2025
Boston Conservatory Alums Bring Real Women Have Curves to Broadway The Latin American immigrant community takes center stage in a new musical featuring Tatian...
18/04/2025
WASHINGTON The FCC's call for public comments and suggestions on outdated regulations that it should be eliminated, has prompted a slew of fillings from bro...
18/04/2025
In a ruling that could have a major impact on the digital advertising market, a federal judge has ruled that Google has monopolized some types of advertising te...
18/04/2025
PEARL RIVER, N.Y. Global media solutions company Active Media Services (AMS) has formed a new relationship with VideoAmp, a measurement company for linear TV, c...
18/04/2025
Netflix reported generally positive results for first-quarter 2025, with revenue up 13% year-over-year to $10.543 billion and operating income growing by 27% to...
18/04/2025
NHL Playoffs 2025: TNT Sports Hits the Road for Onsite Productions With Mobile U...
18/04/2025
EVSs S bastien Verlaine on U.S. Expansion, Next-Generation Products Beyond replay, offerings also target asset management and media infrastructure By Ken Kersc...
18/04/2025
ESPN Unleashes 4DREPLAY as NCAA Women's Gymnastics Championships Hit ABC Men's championships to follow Saturday night on ESPN2 By Brandon Costa, Direct...
18/04/2025
Visualizing Victory: The Latest in AR, XR, and Virtual Production in Live Sports This panel discussion featured leaders from ESPN, CBS Sports, Warner Bros. Disc...
18/04/2025
NHL Playoffs 2025: With 16 Games in First Six Days, ESPN Deploys Variety of Remo...
17/04/2025
Emilie Blichfeldt attends the 2025 Sundance Film Festival premiere of The Ugly ...
17/04/2025
R-GPS gives warfighters a decisive battlefield advantage by punching through adv...
17/04/2025
This year's NAB Show in Las Vegas marked a noticeable shift in the priorities of media and broadcast organisations. Gone are the days of chasing flashy, or ...
17/04/2025
class=attachment-thumbnail size-thumbnail f-align-center alt= decoding=async data-lazy-srcset=https://www.antonbauer.com/wp-content/uploads/2024/12/Amy-Daniel-1...
17/04/2025
SAN JOSE, Calif. Roku and Adobe have announced that they are collaborating on a real time data platform made possible by a a new integration of the Roku Data C...
17/04/2025
NEW YORK Internet advertising revenues demonstrated strong growth in 2024, increasing 14.9% year-over-year to $258.6 billion, according to the IAB Internet Adv...
17/04/2025
SDVI Earns Both Product and Project of the Year Awards at 2025 NAB Show
Brie Clayton April 17, 2025
0 Comments
Left to right, Geoff Stedman, CMO, SDVI...
17/04/2025
Singapore Polytechnic Readies Aspiring AV Professionals for Live IP Productions ...
17/04/2025
Calrec Wins 2025 NAB Show Product of the Year Award for True Control 2.0
Brie Clayton April 17, 2025
0 Comments
Image: The Calrec True Control 2.o on ...
17/04/2025
In Return to Berklee, Lucius Looks Back and Moves Forward From mood boards to live demos, the alumni band gave students an exclusive look at the process behin...
17/04/2025
DirecTV's free streaming service MyFree DirecTV has just added another eight channels from NBCUniversal....
17/04/2025
LOS ANGELES The virtual production company GameChanger has announced that it is expanding its global footprint by bringing its virtual production technology to ...
17/04/2025
DENVER The International Broadcaster Coalition Against Piracy (IBCAP) has announced that it has developed a proprietary, automated software-based system to iden...
17/04/2025
Pixalate's new CTV Device Market Share report for Q1 2025 shows that Roku has the highest open programmatic CTV device market share in the United States, wi...
17/04/2025
Edward J. Lewis III Named Senior Vice President of Institutional Advancement Lewis has more than 20 years of industry experience, leading fundraising initiati...
17/04/2025
The Curling Group Puts On Inaugural Curling All-Star Game in Nashville The location in Music City is intended to broaden the sport's appeal By Dan Daley, ...
17/04/2025
April 17th, 2025 Press Materials Available Here
Tribeca Festival 2025 Announces TV & NOW Lineup
World Premieres and Exclusive Cast Panels with Apple TV '...
17/04/2025
SVG Sit-Down: Cisco's Bryan Bedford on Providing End-to-End Support for Clie...