The Competition and Markets Authority (CMA) is to handle two appeals made over the charges BT is permitted to impose for the use of its superfast broadband network.
The appeals from TalkTalk and BT itself were made to the Competition Appeal Tribunal (CAT) following Ofcom’s decision on superfast broadband pricing in March last year.
Because of its position as the largest retail provider of fibre broadband services, BT is required to allow other operators to use its network to sell superfast broadband to consumers under a process known as ‘virtual unbundled local access’ (VULA).
The Ofcom pricing rule aims to ensure that BT maintains a sufficient margin between its wholesale and retail superfast broadband charges, in order to allow other providers profitably to match its prices.
TalkTalk believes BT has set its own retail prices too low, while keeping its wholesale rates too high.
CAT has permitted Sky UK Limited and TalkTalk to be interveners in the appeal brought by BT, and BT to be an intervener in the appeal brought by TalkTalk.
The CMA now has six months to send its final determination.
