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BT fined record £42m for late installations | BT fined record £42m for late installations |
(about 5 hours later) | |
BT has been hit with a record fine from telecoms regulator Ofcom and has set aside £300m to repay providers for delays in installing high-speed lines. | BT has been hit with a record fine from telecoms regulator Ofcom and has set aside £300m to repay providers for delays in installing high-speed lines. |
Ofcom has issued the firm with a £42m fine, which it said was the largest it has ever handed down. | Ofcom has issued the firm with a £42m fine, which it said was the largest it has ever handed down. |
It found BT's Openreach division had cut compensation payments to telecoms providers for delays in installing the lines between early 2013 and late 2014. | It found BT's Openreach division had cut compensation payments to telecoms providers for delays in installing the lines between early 2013 and late 2014. |
Openreach said it "apologised wholeheartedly" for the mistakes. | Openreach said it "apologised wholeheartedly" for the mistakes. |
The investigation found BT had broken rules about its "significant market power" by cutting the payments. | The investigation found BT had broken rules about its "significant market power" by cutting the payments. |
Gaucho Rasmussen, Ofcom's investigations director, said: "These high-speed lines are a vital part of this country's digital backbone. | Gaucho Rasmussen, Ofcom's investigations director, said: "These high-speed lines are a vital part of this country's digital backbone. |
"We found BT broke our rules by failing to pay other telecoms companies proper compensation when these services were not provided on time. | "We found BT broke our rules by failing to pay other telecoms companies proper compensation when these services were not provided on time. |
"The size of our fine reflects how important these rules are to protect competition and, ultimately, consumers and businesses." | "The size of our fine reflects how important these rules are to protect competition and, ultimately, consumers and businesses." |
'Fall short' | 'Fall short' |
Openreach provides the wires and cables that powers the UK's broadband and landline phone network. | Openreach provides the wires and cables that powers the UK's broadband and landline phone network. |
In this case, it failed to pay full compensation to providers when it was late installing ethernet lines - high-speed cables used by large businesses, and mobile and broadband providers, to transmit data. | In this case, it failed to pay full compensation to providers when it was late installing ethernet lines - high-speed cables used by large businesses, and mobile and broadband providers, to transmit data. |
Earlier this month, BT agreed to Ofcom's demands for it to legally separate Openreach from its main business. | Earlier this month, BT agreed to Ofcom's demands for it to legally separate Openreach from its main business. |
Under the changes, Openreach will become a distinct company with its own staff, management and strategy "to serve all of its customers equally". | Under the changes, Openreach will become a distinct company with its own staff, management and strategy "to serve all of its customers equally". |
BT chief executive Gavin Patterson said the investigation "revealed we fell short of the high standards" for serving telecoms providers. | BT chief executive Gavin Patterson said the investigation "revealed we fell short of the high standards" for serving telecoms providers. |
"We take this issue very seriously and we have put in place measures, controls and people to prevent it happening again," he said. | "We take this issue very seriously and we have put in place measures, controls and people to prevent it happening again," he said. |
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