back to article CMA to review BT whinge over superfast broadband price setting

Blighty's competition watchdog is to review an appeal by BT against new rules designed to prevent the telco from setting unfair wholesale fibre prices for its rivals. In March last year the regulator Ofcom ruled that BT must maintain a sufficient margin between its wholesale and retail superfast broadband charges in order to …

  1. TheManCalledStan
    WTF?

    Really TalkTalk....

    Competition is so distorted that TalkTalk can offer their Fibre broadband for free for 12 months.... and give you a £50 shopping voucher...

    1. Anonymous Coward
      Anonymous Coward

      Re: Really TalkTalk....

      and can, free of charge, hand out your bank account details for you.

      1. Anonymous Coward
        Anonymous Coward

        Re: Really TalkTalk....

        But then all of your bandwidth will be used to slurp your private data if TalkTalk have a hand in it.

        1. Anonymous Coward
          Anonymous Coward

          Re: Really TalkTalk....

          >>But then all of your bandwidth will be used to slurp your private data if TalkTalk have a hand in it.

          Just one of many in the queue doing it these days. Do remember it was BT who tried the Phorm nonsense.

  2. banalyzer

    just split Openretch from BT so that BT has no control and has to pay wholesale prices same as everyone else.

    These kinds of splits have been carried out before, there is no reason why it can't be done now.

    1. Gadgetman

      They already do

      1. Paul

        Since BT Openreach and BT Retail are the same company, it means Openreach can set their prices really high and then let Retail sell on the services almost at a loss, and thus Oreach make all the profits.

        That then makes it almost impossible for third parties to compete as they have to make a reasonable margin on the prices set by Oreach.

        This then allows BT to sign lucrative deals with sports entertainment industry and have it subsidised by their competitors.

        1. This post has been deleted by its author

      2. Alan Brown Silver badge

        @gadgetman:

        No, they don't. There is no such company as BT Openreach. It's not even operated as a seperate entity internally. _everything_ about it is smoke and mirrors.

        This is why New Zealand forced a 100% split between the line and dialtone sides of the incumbent telco (One of the few things they did right. Up to 2011, NZ was a poster child of how NOT to privatise your state-owned telco. Post 2011 the market is transformed thanks to preventing the incumbent pulling the crap that BT still does.)

  3. Norm DePlume

    Balance

    So, in the modern era, is it the case that you know a decision is fairly balanced if both opposing sides appeal it?

  4. Otto is a bear.

    Never been sure

    That any solution that applies margin on margin is a good deal for anybody, I wonder how cheaply we could have broadband if we could buy it wholesale ourselves. Mind you that would assume that the monopoly supplier behaved honorably, BT, how likely is that.

    Just a note that Talk Talk don't give you a years free broadband and a £50 shopping voucher, you still pay for them eventually, they just dilute their margin for the contract term and hope you stay on. Which speaks volumes about the margin available.

    1. Anonymous Coward
      Anonymous Coward

      Re: Never been sure

      Well they don't give me one because I would not touch them with a bargepole, but they do to anyone smart enough to keep a diary (and you don't need to be a techie to work out dates, with no disrespect - really honestly, the traditional 'housewife' or 'barrow boy' were quite capable of doing this and did) - and people are learning.

      Incidentally there was a very good deal on a TV + decent tablet from Sky over christmas 2015 - pays for a complete year of service if you have a diary.

    2. Anonymous Coward
      Anonymous Coward

      Re: Never been sure

      @otto is a bear

      For info

      ...........................Mkt Cap............Net profit margin......Gross margin

      BT Group plc.....38,539.71M............11.96......................77.33

      Talktalk...............1,998.82M..............4.01.......................54.60

  5. Anonymous Coward
    Anonymous Coward

    BT Pensioners

    BT pensioners are out in force here today I see.

    1. Roland6 Silver badge
      Happy

      Re: BT Pensioners

      Don't know about pensioners, shareholders more likely:

      TalkTalk: https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=talktalk%20share%20price

      BT: https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=bt%20group%20share%20price

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