Investigation into BT’s compliance with BCMR price regulation

28 January 2020

Closed

Investigation into British Telecommunications plc (BT)
Case opened 18 July 2019
Case closed 28 January 2020
Summary

This investigation considers whether BT complied with its charging obligations under Ofcom’s Business Connectivity Market Reviews since 16 May 2014.

Relevant legal provision(s)

SMP Condition 5.2, which is set out at Annex 7 of the Business Connectivity Market Review statement dated 28 March 2013, and the accompanying Direction made pursuant to sections 49 and 49A of the Communications Act 2003 and paragraph (e) of SMP services Condition 5.2, which is set out at Annex 1 of the ECC Direction statement dated 16 May 2014.

SMP Condition 5.3, which is set out at Annex 7 of the Business Connectivity Market Review statement dated 28 March 2013, and the accompanying Direction made pursuant to sections 49 and 49A of the Communications Act 2003 and to paragraph (o) of SMP services Condition 5.3, which is set out at Annex 1 of the ECC Direction statement dated 16 May 2014.

SMP Condition 10F.8, which is set out at Annex 35 of the Business Connectivity Market Review statement dated 28 April 2016.

SMP Condition 9C, which is set out at Annex 1 of the Business Connectivity Market Review Temporary Conditions statement dated 23 November 2017.

Ofcom has closed its investigation into Openreach’s billing of excess construction charges (ECCs) on ethernet access direct (EAD) orders.

Having gathered and reviewed further information from Openreach, we have decided not to proceed with the investigation on administrative priority grounds.

We have made this decision in light of the limited consumer harm and the proactive steps Openreach has taken to address the issue, including voluntarily reimbursing all affected telecoms providers for the full amount of the ECC overcharge including interest.

Compliance with significant market power (SMP) conditions remains one of the most important regulatory obligations on telecoms companies. We will continue to monitor Openreach’s compliance with SMP conditions.  We are supportive of the proactive and comprehensive compliance and assurance review launched recently by Openreach, which aims to identify improvements in its processes and systems to ensure strong compliance going forward.


Case leader

Georgi Pojarliev (Georgi.Pojarliev@ofcom.org.uk)

Case reference CW/01246/06/19