BT warns of challenge to Ofcom fees ruling

British telecom has warned it could sue UK telecoms regulator Ofcom if it refused to let the fixed-line phone company use a rise in wholesale fees levied on rivals to help repair its pension deficit.

Ian Livingston, BT Group's chief executive,said he would take a "very serious look" at launching a legal challenge if Ofcom did not let the company raise the fees. His stance is likely to alarm British Sky Broadcasting and TalkTalk, which have opposed BT's plea that the wholesale charges should partly reflect the cost of servicing BT's pension deficit.