BT to be fined £42m for breaching contracts with telecoms providers

31 March 2017

BT will be fined £42m for a breach of Ofcom’s rules, after the company reduced compensation payments to other telecoms providers for late installations. The penalty is a result of an investigation by Ofcom into BT’s network arm, Openreach.

The investigation found that, between January 2013 and December 2014, BT misused the terms of its contracts to reduce compensation payments owed to other telecoms providers for failing to deliver Ethernet services on time.

The penalty incorporates a 30% reduction to reflect BT’s agreement to settle Ofcom’s investigation by admitting full liability, and to set up a scheme to compensate the telecoms providers that have been affected

BT will also be fined £300,000 for failing to provide information to Ofcom. Through this Ethernet investigation, Ofcom became aware that BT failed to provide accurate and complete information for the original dispute, the Business Connectivity Market Review 2016 and this investigation.

Read more about Ofcom's decision on its website.

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