
BT to be fined £42m for breaching contracts with telecoms providers 26 March 2017
Ofcom investigation finds BT cut its compensation payments for delays in connecting high-speed business lines
These important networks underpin the UK's communications infrastructure
BT has admitted failings, and agreed to compensate the companies affected
BT will be fined £42m for a serious 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.
Ethernet services are the most common type of leased lines' dedicated, high-speed cables used by large businesses, and mobile and broadband providers, to transmit data. These lines also provide vital, high-capacity links for hospitals, schools and libraries.
Ofcom has taken enforcement action because BT breached rules that address the company's significant market power'. This market power comes from the fact that most telecoms companies rely on access to BT's network to provide services such as broadband to their customers. Ofcom's rules are therefore fundamental in ensuring BT does not act in a way that could harm competition and, ultimately, consumers and businesses.[1]
Gaucho Rasmussen, Ofcom's Investigations Director, said: These high-speed lines are a vital part of this country's digital backbone. Millions of people rely on BT's network for the phone and broadband services they use every day.
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. Our message is clear we will not tolerate this sort of behaviour.
The investigation
BT is obliged, under Ofcom's rules, to install Ethernet services to its wholesale customers (providers such as Vodafone and TalkTalk), in accordance with its contracts, and to make compensation payments for late delivery. BT's contracts require it to deliver Ethernet services within 30 working days, or pay compensation to the company affected.
If BT encounters problems that require more time to resolve, in certain circumstances it can assume that a customer has agreed to an extension. But Ofcom found that BT did this retrospectively over a sustained period, to reduce the level of compensation it owed to telecoms providers. Not only did this harm other telecoms companies, but it was also likely to have harmed the UK businesses and consumers who rely on high quality, high-speed, broadband services every day.
Ofcom opened the investigation in November 2015. This happened shortly after Vodafone brought allegations to Ofcom that BT had misused its contractual terms through the late delivery of Ethernet services without Vodafone's consent, and by failing to compensate the company for these delays.[2]
Financial penalty and compensationAs a result of these findings, Ofcom will impose a penalty of £42,000,000 on BT.
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.[3]
BT must compensate, within twelve months, all the telecoms providers who faced financial loss because of its conduct. We anticipate that BT's customers will engage constructively in the compensation process.
Additional £300k fineBT 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.
Ofcom takes any breach of our information gathering powers very seriously as such failures undermine the integrity of the regulatory regime. Any company that breaks these rules should expect similar consequences.
ENDS
NOTES TO EDITORS
In market reviews of wholesale business connectivity services, which Ofcom completed in 2008, 2013 and 2016, Ofcom found that BT had a position of significant market power in providing wholesale Ethernet services. Ofcom has imposed regulatory obligations on BT to ensure that communications providers are able to access these services. These obligations are intended to promote competition in particular by facilitating competition in retail markets, enabling providers to compete without needing to invest in a national network.
Vodafone's allegations were in the form of a regulatory dispute submission. Ofcom considered these issues under its dispute resolution powers. Ofcom issued its final statement PDF, 1.2 MB on the dispute between Vodafone and BT in January 2016.
The original level of penalty, prior to the application of a 30% reduction, was £60m. The fine will be paid to Ofcom, and passed on to HM Treasury.
Sectors
Telecoms
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
07/10/2026
Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...
06/09/2026
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
29/08/2026
Odyssey & Oracle console software update incoming
With a second console now joining their O-Series, SSL have announced the upcoming launch of O-Series V2.0,...
29/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/08/2026
PlayBox Technology is heading to IBC2026 with a clear message: the future of broadcast and streaming is not about replacing everything it is about making what...
29/08/2026
Berklee Announces Fall 2026 Signature Series This years concerts feature MonoNeon, Brandon Woody, Marcus Gilmore, and Caroline Davis, alongside Berklee Asia R...
28/08/2026
KCBS takes the Chargers side, KCAL takes the Rams - with feeds out to 18 partner...
28/08/2026
(L-R) Topher Grace, Cristin Milioti, Delaney Quinn, Casper Kelly, and Keegan-Michael Key pose with the character Buddy at the Buddy Premiere during the 2026 S...
28/08/2026
The Italian orchestra, reimagined
IK Multimedia have announced the upcoming launch of Sinphonica, a new family of Italian orchestral instruments designed f...
28/08/2026
Voice-isolation plug-in boasts sub-10ms latency
Launched in 2025, CEDAR Audio's Icons range was created with the aim of bringing the company's renow...
28/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/08/2026
Global media technology company Backlight will showcase its latest innovations across Iconik and Wildmoka live video creation and distribution at IBC2026 (booth...
28/08/2026
Emergent, a developer of browser-based, AI-enhanced content production tools, will present its complete AI-enhanced content production platform at IBC2026, exhi...
28/08/2026
Joseph Bell Announces VFX & Animation World Atlas 2026
Joseph Bell August 28, 2026
1 Comment
Joseph Bell's Visual Effects & Animation World Atlas ...
28/08/2026
Paris-Troyes en Champagne Goes Live on France.tv with AVEO
Brie Clayton August 28, 2026
0 Comments
Regional audiovisual company builds broadcastgrade ...
28/08/2026
DHD to Introduce its Third-Generation Audio Mixing Console at IBC 2026
Brie Clayton August 28, 2026
0 Comments
DHD.audio has chosen IBC 2026 as the la...
28/08/2026
Encompass Digital Media and Grass Valley are expanding their collaboration with the launch of Altitude Playout Plus, a software-defined channel origination plat...
28/08/2026
Yospace, the trusted leader in Dynamic Ad Insertion (DAI), has announced the release of its Ad Presentation solution, which enables broadcasters to apply non-li...
28/08/2026
TSL Showcases Reduced Complexity for Control & Monitoring Across IP Workflows at IBC2026
New TSL Hummingbird capabilities including Dante control routing, toge...
28/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/08/2026
GlobalM and Lamhas Satellite Services today announced a new agreement that will see GlobalMs GMX technology deployed as part of Lamhas expanding managed IP broa...
28/08/2026
Integrated 25GbE Connectivity Delivers UHD Video Directly to Up to Two Monitors, Eliminates External Gateways, and Supports SMPTE ST 2022-7 Network-Path Protect...
28/08/2026
Interactive Ask Me Anything sessions will connect broadcasters and technology providers with the experts developing a practical, interoperable roadmap for sof...
28/08/2026
At IBC2026, TAG will show sub-2-frame latency and 800 Gbps of aggregate scale for uncompressed ST 2110 monitoring in software, live MXL interoperability with pa...
28/08/2026
SportsBox, BHV's Ultra-Compact 4K Remote Switcher, Moves from Development to Production at IBC 2026
SportsBox brings flexibility without compromise to high...
28/08/2026
Lutz Rathmann named CEO of Riedel Communications Anthony Zuyderhoff to lead unified customer-facing organization as CCO
Riedel Communications is strengthenin...
28/08/2026
LA JOLLA, CA-Scripps Research has established the Pete Schultz Fund for Innovati...
28/08/2026
LA JOLLA, CA-Chemical structures called cyclopropanols are among the most useful...
28/08/2026
Friday 28 August 2026
Sky Secures Approval for Major Livingston Campus Investme...
27/08/2026
ESPN and Disney are launching College Football Saturdays, adding two college football games per week to Disney for U.S. subscribers as part of their existing ...
27/08/2026
Zixi will exhibit at IBC2026 (Hall 5, Stand 5.A76, RAI Amsterdam, September 11-14), demonstrating the Zixi Platform and the latest release of Zixi Broadcaster, ...
27/08/2026
NDI has announced that its ecosystem has surpassed 1.2 million NDI-enabled hardware nodes worldwide, spanning products from more than 200 hardware brands across...
27/08/2026
Clear-Com conducted a pre-launch field trial of FreeSpeak Cell during Carnival 2026 in Rio de Janeiro, in partnership with Brazilian systems integrator Savana C...
27/08/2026
BHV returns to IBC 2026 with an important milestone for its own SportsBox: the broadcast industry's smallest remote vision mixer and format processor has mo...
27/08/2026
TOGETHXR and Snapchat have announced the second cohort of their Snap the Gap content creator program, welcoming nine athletes as Snap Stars. The program provide...
27/08/2026
MediaKind has announced that CNBC UK has selected Beam to modernize its contribution and distribution infrastructure for live broadcast operations. The deployme...
27/08/2026
Monitor engineer Chris Dwight has deployed Sennheiser's Spectera wideband bi...
27/08/2026
Telestream has announced an expansion of its UP cloud-native platform, adding capabilities for orchestrating Telestream services, third-party technologies, and ...
27/08/2026
Swerve TV has signed a multi-year partnership with GLORY Kickboxing, bringing live GLORY events and library programming to Swerve Combat, Swerve TV's free a...
27/08/2026
Dalet has announced a new integrated content experience with Agence France-Presse (AFP) in Dalet Flex, designed to bring AFP's editorial metadata into the p...
27/08/2026
Grass Valley will demonstrate an integrated live production environment at IBC2026 (Booth 9.A01, RAI Amsterdam, September 11-14), combining K-Frame, Maverik X, ...
27/08/2026
The National Women's Soccer League and Roku have announced an expanded partnership, with the Roku Sports Channel becoming the exclusive streaming home of ei...
27/08/2026
FuboTV has announced the launch of ACC Network Extra (ACCNX) and SEC Network (SECN ) on the Fubo streaming service at no additional cost to subscribers with En...
27/08/2026
Sports marketers have entered the experiential age. Today, sports teams, leagues, and venues are increasingly using immersive interactions and real world events...
27/08/2026
MultiDyne will introduce the MDoG-8800 at IBC2026 (Stand 11.C12, RAI Amsterdam, September 11-14), extending its openGear portfolio with a high-density fiber tra...