Ofcom has proposed new requirements on BT to promote competition in the superfast broadband market. Under the new rules, BT would be obliged to maintain a sufficient margin between its wholesale and retail superfast broadband charges to allow rivals to profitably match its prices.
Rival operators currently retail superfast broadband over BT's network, using a process known as 'virtual unbundled local access' (VULA). Ofcom is proposing to put in place a regulatory condition requiring BT to ensure that the margin between its wholesale VULA charges and its retail superfast broadband prices is sufficient for rival operators to compete and make a profit.
The new rules will take into account the costs and revenues of the BT Sport channels. The consultation closes on 28 August, with Ofcom expecting to publish a final statement on BT's superfast broadband margin later in 2014.
