Ofcom has rejected a complaint from TalkTalk that BT deliberately tried to squeeze rivals’ profits on fibre-broadband connections.
Most ISPs rely on BT’s copper and fibre network for the services they offer end users and buy access on a wholesale basis.
TalkTalk has accused BT of squeezing their profits by failing to maintain a sufficient margin between the wholesale price it charges rivals and the retail prices it charges domestic and business end users.
According to the complainant, this has the effect of limiting the prices rivals can charge their customers while remaining competitive.
However in an update published today, Ofcom says it has “provisionally decided there are no grounds for action.”
However it has announced a consultation on proposals would wold require BT to maintain “a sufficient margin between its wholesale and retail superfast broadband charges to allow other operators profitably to match its prices.”
The costs of operating BT’s three sports channels, which are given away free to broadband customers, will be taken into consideration when assessing the firm’s margins.