BT's competitors may have to make up the company's shortfall for its pension scheme as a result of an Ofcom consultation launched today.
The regulator will decide whether Openreach, the division of BT set up to lease its lines to other providers, should be allowed to increase its prices to make up for the deficit in pensions. If agreed, it could see costs rising by up to four per cent.
BT's pension scheme had a pre-tax deficit of 9 billion at the end of the last quarter due to three times as many employees taking out from it as current employees paying in.
However, there are fears that increased prices for competitors could lead to increased prices for their customers.
A statement from Ofcom said: "So far Ofcom has not taken a view on whether it is appropriate or not to change its current principles in relation to pension costs."
"If Ofcom changes its approach, any adjustments in wholesale charges would not necessarily be felt proportionately by consumers."
A BT spokesperson said the company welcomed the consultation and added that the firm considers "it entirely reasonable that we should be able to recover an appropriate share of our pension deficit costs through regulated charges."
"There is good regulatory precedent for pension deficit costs to be recovered in this way in other regulated industries," BT added.
Ofcom is expected to publish a further consultation in Spring 2010 with more statements to follow throughout the year.
-
Putting small language models under the microscopeITPro Podcast The benefits of small language models are undeniable – but they're no silver bullet
-
CyberOne appoints Microsoft’s Tracey Pretorius to its advisory boardNews The threat intelligence leader will provide strategic guidance to CyberOne’s executive team
-
Optimise CX and accelerate business growth through your voice networkwhitepaper Protecting the human experience in a digital world
-
New Ofcom guidelines show it’s getting tougher on big techNews New Ofcom guidance outlining its plans for the Online Safety Act show the regulator is toughening up on big tech.
-
IDC InfoBrief: Sustainability doesn’t need to be all stick and no carrotwhitepaper CIOs are facing two conflicting strategic imperatives
-
‘The pace of change is taking its toll’: Business leaders are becoming burned out by rapid technological changesNews Tech leaders are contending with mounting stress levels amidst a sharpened focus on adopting new technologies and ramping up transformation efforts
-
Unlocking the power of your digital servicesSponsored Businesses have invested significant cash into technology since COVID-19, but are they really getting their money's worth?
-
The forgotten workforce needs a new communications strategySponsored Reliable communications technologies are key to building an efficient remote workforce
-
The future of work and the forgotten workforcewhitepaper How to deploy a mobile-first strategy so no one gets left behind
-
Building an outstanding digital experiencewhitepaper Insight into how banks and financial services organizations can deliver the digital experiences customers and employees expect
