Ofcom have issued their Final Determination in relation to disputes between each of TalkTalk, BSkyB, Virgin Media, C&WW and Verizon and BT over the level of charges for ethernet services. In the Business Connectivity Market Reviews of 2004 and 2008, Ofcom found BT to have significant market power in the alternative interface symmetric broadband origination market and imposed an SMP Condition requiring BT to ensure that each and every charge for the services in dispute are cost-oriented. In resolving the disputes, Ofcom have found that BT’s charges were not cost-oriented, based on a comparison with the costs of provision on a forward-looking long run incremental cost or with Distributed Stand Alone Cost. Ofcom have ordered BT to repay the amount of overcharge to the other communications providers. It is highly likely that the decision will be appealed and after hearing an application from BT, the Competition Appeal Tribunal has confirmed that the time period for lodging an appeal remains two months from the date of the Final Determination.
For the full text of the Final Determination, please go to: