The communications regulator has stated that BT may be able to raise its network charges for rivals due to increased broadband and telephone service competition

Officials from the communications regulator Ofcom have stated that British Telecom may be able to raise the fees that it charges rival firms for using its network, stating that this is due to an increase in competition when it comes to broadband and telephone services. The regulator said that the increased competition meant that there was scope for a rise, although the rise is unlikely to be as high as BT hopes.

In 2006 the maximum prices that could be charged by BT Openreach for other rival companies that used its service were agreed by the regulator, but there was no annual adjustment included. However, Ofcom did state that it would review the charges. In light of increased competition in the broadband and telephone sector it has done this, and may grant BT permission to hike up its network charges for rivals.

In a statement Ofcom said: “Since the charges were first set and Openreach was established, there has been a transformation in the telecoms market, with a significant increase in direct competition in the provision of both telephone lines and broadband services.” It also went on to state: “The evidence we have reviewed to date suggests that there is likely to be a case for some increases in the charges for the regulated access services. However, we do not currently believe that the increases need to be as significant as is implied by the projections provided by BT.”

The Openreach service allows rival providers to offer telephone services to customers using the BT network. Whilst an approval in charge increases will spell good news for BT it is likely to impact on many rivals that use the service, such as Carphone Warehouse.