Ofcom accuses BT on pricing

The UK communications regulator has accused BT of potentially abusing its dominant position in the wholesale telecoms market.

BT, which denies any wrongdoing, has until January to respond to Ofcom’s “statement of objections”. Ofcom has been investigating the former monopoly’s alleged “margin squeeze” for two years, after complaints by two rivals. “BT refutes, in the strongest terms, any allegation that we applied incorrect pricing to our wholesale calls product between July 2008 and April 2009,” BT said. “We will, of course, participate fully in the Ofcom investigation over the coming months and defend our pricing vigorously.” BT shares dipped 1.3p to 185.8p. If Ofcom decides that competition law has been broken, BT could face a fine of up to 10 per cent of the turnover of its “wholesale calls” product for the period under investigation.