UK: OFCOM considers the possibility of adding pension costs to unbundled loop charges

[ft] Regulators on Friday raised the possibility that broadband customers with Carphone Warehouse and British Sky Broadcasting could in effect end up helping to fund BT’s yawning pension deficit.

BT is seeking permission from regulators to include some of the cost of servicing its pension deficit in the wholesale charges that it levies on Carphone and BSkyB.
Carphone and others rent phone lines from BT to offer phone and broadband services to their customers.

Ofcom rejected BT’s request for the time being but surprised some observers by suggesting it could change its stance in future.

There is a knock-on risk that if BT persuades Ofcom of its case, any rise in the wholesale charges would get passed on by Carphone and others to their customers in the form of higher phone and broadband bills.

BT’s rivals in the consumer broadband market are expected to fiercely oppose the plan.

Regulator keeps line open for BT