The Competition Appeal Tribunal (CAT) has registered an appeal by Cable & Wireless, Carphone Warehouse and Gamma Telecom against an Ofcom decision in July concerning the rates BT can charge for notifying and redirecting calls to operators of carrier pre-selection services. The applicants argue that Ofcom acted against a previous determination in January where it was decided that BT could not cover such costs through the wholesale fees for carrier pre-selection (CPS).

The applicants are seeking that the July decision be set aside and that Ofcom should order repayment of the overpayments made by them to BT since 28 November 2003, as a result of the erroneous inclusion by BT of the retail costs in the CPS set-up charge. The applicants submit that the determination by Ofcom contained serious errors in law by failing to apply the statutory regime for dispute resolution and by misdirecting itself as to the legal basis for the exercise of its powers.