Sony Pixel Power calrec Sony

BT to be fined 4m for breaching contracts with telecoms providers

28/03/2017

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
LINK: https://www.ofcom.org.uk/about-ofcom/latest/media/media-releases/2017/...
See more stories from ofcom

Most recent headlines

09/11/2025

Dalet Unveils Agentic AI Media Workflows at IBC2025

Dalet today announced a transformative leap forward for media operations: Agentic Artificial Intelligence (AI) that unifies the Dalet ecosystem under one natura...

03/11/2025

All You Need to Know About MXL

Broadcasters have spent years trying to integrate different vendor technologies in their facilities. As the industry has moved closer to software, that struggle...

03/11/2025

The Battle to Protect Broadcast Content From AI Has Just Begun

As the malevolent siege against broadcasters' interests intensifies from the far reaches of artificial intelligence misuse to relentless innovation in the m...

03/11/2025

Gary Snow Plans to Retire From Wheatstone

Wheatstone founder and owner Gary Snow will retire from the company by the end of next year....

03/11/2025

Hybrid, AI Are Guiding the Measurement of TV Viewership

In ye olde days of traditional television, when U.S. TV viewing options were limited to ABC, CBS, NBC and PBS, Nielsen's paper diaries were sufficient for t...

03/11/2025

Brand New RT Documentary Series Tonight New RT Documentary Series Trackers: The People v The Banks

They've made that decision and ruined an awful lot of people's lives. ...

02/11/2025

Space42 Expands Earth Observation Constellation, Foresight, with Launch of Three New SAR Satellites

Abu Dhabi, UAE November 2, 2025: Space42 (ADX: SPACE42), the UAE-based AI-powe...

01/11/2025

Thunderbolt 3 and Symphony MkII

Thunderbolt 3 Now Standard on Symphony MkII - Starting November 11 Beginning November 11, all new Apogee Symphony I/O MkII units will ship with Thunderbolt 3 as...

01/11/2025

Expanding Symphony Desktop Using ADAT

How to Expand the Apogee Symphony Desktop with Cranborne 500ADAT Want to expand your Symphony Desktop beyond two inputs? Whether you're tracking a full drum...

01/11/2025

aconnic AG releases Half Year Financial Report 2025 and implements Change Measures

aconnic AG (ISIN: DE000A0LBKW6), Munich, has published the Financial Report for ...

01/11/2025

tvONE and Matrox Video Partner to Deliver Flawless AV-ove...

tvONE is proud to announce a strategic partnership with Matrox Video, combining CALICO PRO's high-performance video processing with the Matrox ConvertIP Ser...

01/11/2025

CJP Broadcast Joins Grass Valley Partner Programme to Str...

CJP Broadcast has joined the Grass Valley partner programme as both a Systems Integration Partner and AMPP Partner. The collaboration enhances CJP's ability...

01/11/2025

TAG Video Systems Earns Dual Recognition for ESG Initiati...

TAG Video Systems, the leader in software-based IP end-to-end workflow monitoring, deep probing, and real-time visualization, has earned a higher-rated DPP Comm...

01/11/2025

Operative Announces New CEO to Drive Next Phase of Growth

Michael Napodano Appointed New CEO Of Operative Media Operative today announced the appointment of Mike Napodano as Chief Executive Officer, marking the next s...

01/11/2025

Cine Gear Expo Atlanta 2025 Success at Trilith Studios

Film industry professionals flocked to Cine Gear Expo Atlanta 2025 at celebrated Trilith Studios in Fayetteville, Georgia, on October 3 and 4. Back for its 6th ...

01/11/2025

Christopher Ross BSC and 300 Asteras Light the Border Cro...

Photo courtesy of Peacock and Sky Christopher Ross, BSC, began his cinematic obsession early. He cites reading Scorsese on Scorsese as a teenager with teaching...

01/11/2025

ITN, Magnite Launch New Private Marketplace for Local Linear TV

NEW YORK ITN and the sell-side advertising company Magnite have announced the launch of what they are billing as the industrys first Local Linear TV Private Mar...

31/10/2025

FanDuel Sports Network To Deliver Selected Live NBA, NHL Games to Major Streaming Services for In-Market Viewers

FanDuel Sports Network To Deliver Selected Live NBA, NHL Games to Major Streamin...

31/10/2025

NBC Jumps Out of the Gate in Extended Breeder's Cup Deal With Dual Drones, Jockey Cams, RF Super-Mo

NBC Jumps Out of the Gate in Extended Breeder's Cup Deal With Dual Drones, J...

31/10/2025

Tribute: Remembering Segomotso Keorapetse (28 May 1968 22 October 2025)

FOR IMMEDIATE RELEASE 30 October 2025 It is with great sadness that we mourn the passing of Segomotso Keorapetse, an award- winning South African television d...

31/10/2025

Nexstar Extends Chairman and CEO Perry Sook Through 2029

IRVING, Texas As station groups move into an era that promises rapid tech, regulatory and economic changes, Nexstar Media Group said its board has extended chai...

31/10/2025

Late Night Thrives on Social Media With Billions of Views in 2025

While some analysts have questioned the ongoing economic viability of broacast-TV late night shows amid ongoing declines in linear viewing, new data from Tubula...

31/10/2025

Disney Programming Dropped From YouTube TV

The contentious contract negotiations between The Walt Disney Co. and YouTube TV have resulted in a blackout of Disney-owned programming on the pay TV operator....

31/10/2025

tvONE Integrates CALICO PRO Video Processing With Matrox ConvertIP Series

CINCINNATI Video conversion and AV signal distribution specialist tvONE and Matrox Video have struck a strategic partnership, combining CALICO PRO's video p...

31/10/2025

IAB Urges Standards for CTV Ad Measurement

NEW YORK The Interactive Advertising Bureau (IAB) today released a new industry guide that discusses the urgency of adopting new standards that will help advert...

31/10/2025

Late Night Shows Thrive on Social Media with Billions of Views in 2025

While some analysts have questioned the ongoing economic viability of late night shows on broadcast TV amid ongoing declines in linear viewing, new data from Tu...

31/10/2025

Berklee Celebrates the Inauguration of President Jim Lucchese

Berklee Celebrates the Inauguration of President Jim Lucchese In his inaugural address, Lucchese shared an optimistic vision for Berklee's future as a for...

31/10/2025

Family, Food, and Films: Netflix's 'Dining with the Kapoors' Arrives November 21

Back to All News Family, Food, and Films: Netflix's Dining with the Kapoors...

31/10/2025

DPA 4055 Featured in Technologies for Worship Magazine

The review highlights DPA 4055 Kick Drum Microphone for its compact design, ease of placement, and authentic tone that captures the true character of the drum p...

31/10/2025

RT Raidi na Gaeltachta Award 2025 to be presented to Piln N Chiarin

The RT Raidi na Gaeltachta Award 2025 will be presented to journalist P il n N Chiar in at the Oireachtas na Samhna in Belfast tomorrow, Saturday 1 November,...

31/10/2025

Share the magic: RT lyric fm Choirs for Christmas Competition 2025 open for submissions

RT lyric fm is calling for choirs across Ireland to share their festive music-m...

31/10/2025

Dnall Mac Ruair, Cuan Seireadin and Ts ite among the winners at the Oireachtas Communications Awards 2025

Three awards were presented to RT Raidi na Gaeltachta broadcasters at the Oire...

31/10/2025

RT is Supporting 29 Arts and Cultural Events across Ireland this November

RT continues its proud tradition of championing Ireland's vibrant arts and cultural landscape through its RT Supporting the Arts initiative. This November...

31/10/2025

RT selects Irish independent production company to produce Christian Worship on RT One and RT Player

RT selects Irish independent production company to produce Christian Worship on...

31/10/2025

Korea Joins AI Industrial Revolution: NVIDIA CEO Jensen Huang Unveils Historic Partnership at APEC Summit

Amidst Gyeongju, South Korea's ancient temples and modern skylines, Jensen H...

30/10/2025

Midwich Secures UK & Ireland Distribution Deal with X2O Media To Revolutionize Hybrid Learning

Midwich has signed a UK and Ireland distribution deal with X2O Media, a worldwid...

30/10/2025

SVG Students To Watch: Sam Newitt, Kansas State University

SVG Students To Watch: Sam Newitt, Kansas State UniversityThe South Dakota native thrives in many roles behind the scenes at K-StateHD.TVBy Brandon Costa, Direc...

30/10/2025

SVG Sit-Down: Swerve Sports' Christy Tanner Explores the Young FAST Channel's Early Success

SVG Sit-Down: Swerve Sports' Christy Tanner Explores the Young FAST Channel&...

30/10/2025

SVG Campus Shot Callers: Andy Liebsch, Senior Director, Video Services, Kansas State University

SVG Campus Shot Callers: Andy Liebsch, Senior Director, Video Services, Kansas S...

30/10/2025

Diversified Names Paul Lidsky CEO, Expanding Leadership Role After Serving as Board Chairman

Diversified Names Paul Lidsky CEO, Expanding Leadership Role After Serving as Bo...

30/10/2025

NBA, Cosm Enter Long-Term Partnership for Shared Reality Production, Distribution

NBA, Cosm Enter Long-Term Partnership for Shared Reality Production, Distributio...

30/10/2025

FanDuel Sports Network to Deliver Select Live NBA, NHL Games to Major Streaming Services for In-Market Viewers

FanDuel Sports Network to Deliver Select Live NBA, NHL Games to Major Streaming ...

30/10/2025

If I Had Legs, I'd Kick You, East of Wall, and More Sundance Institute-Supported Films Nominated for 35th Gotham Awards

As the year comes to a close, we can feel the invigorating wind sweeping in for ...

30/10/2025

Give Me the Backstory: Get to Know Max Walker-Silverman, the Writer-Director of Rebuilding

By Bailey Pennick One of the most exciting things about the Sundance Film Festi...

30/10/2025

Excellent training at SGL Carbon's Bonn site

The SGL Carbon site in Bonn has a long tradition of training. For many years, young talent has been successfully trained here, regularly achieving excellent exa...

30/10/2025

SBS, NITV and Screen Australia announce 2025 Digital Originals Shortlist

SBS, NITV and Screen Australia announce 2025 Digital Originals Shortlist 29 October, 2025 Media releases SBS, NITV and Screen Australia are excited to unve...

30/10/2025

Remarks for the 2025 APEC CEO Roundtable

Jon Rambeau, President of Integrated Mission Systems at L3Harris Technologies, speaks about industrial collaboration at the Asia-Pacific Economic Cooperation (A...

30/10/2025

L3Harris Technologies Reports Strong Third Quarter 2025 Results, Increases 2025 Guidance

MELBOURNE, Fla., October 30, 2025 - L3Harris Technologies (NYSE: LHX) reports th...

30/10/2025

FCC's Brendan Carr Issues Draft Proposal for More C-Band Spectrum Sales

WASHINGTON Federal Communications Commission Chair Brendan Carr said he has circulated a proposal for the agency to auction additional midband spectrum in the U...