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BT fined £42 million for cuts in broadband delay payouts

Staff Writer |
BT has been fined £42 million by regulator Ofcom for cutting compensation payouts to rivals for delays in providing high speed broadband.

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The company will now have to pay £300m in compensation, Ofcom added.

The fine includes a 30% discount for BT admitting its liabilities. It was also ordered to pay £0.3m for failing to provide information.

Ofcom said BT's Openreach unit, which installs broadband lines misused the terms of its contract to cut payments to other providers between January 2013 and December 2014.

The company was supposed to pay out compensation after failing to deliver ethernet high-speed services to other, smaller providers in adequate time.

"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," the regulator said in a statement.

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