British regulator proposes margin rules for BT fibre

LONDON, June 19 Thu Jun 19, 2014 2:20am EDT

LONDON, June 19 (Reuters) - Britain's telecommunications regulator on Thursday proposed setting guidelines for the margins BT has to maintain when selling its superfast fibre product to rivals, to allow others to profitably match its prices.

Ofcom said in May it would not regulate the prices BT can charge competitors such as TalkTalk and BSkyB but on Thursday it proposed rules which would require a sufficient margin to be held between its wholesale and retail charges.

"Today's proposals preserve pricing flexibility, while seeking to ensure that BT does not set prices in such a way that prevents other operators from competing profitably for superfast broadband customers," it said. (Reporting by Kate Holton; editing by James Davey)

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