PRESS DIGEST - British business - Feb 6

The Times

POST OFFICE COMPENSATION CLAIM COULD COST MILLIONS

Claims by the Communication Workers' Union that the Post Office [GBPO.UL] contravened employment laws when restructuring its network could see the group forced into paying up to 6.5 million pounds in compensation to workers. The union is taking the Post Office to an employment tribunal on behalf of 1,300 of its members, formerly of Crown Post Offices, who were not entitled to transfer to the unit's new owner after the deal that saw it franchised to WH Smith (SMWH.L: Quote, Profile, Research, Stock Buzz) and other businesses. The Post Office wants over five years to reduce costs by 270 million pounds.

BROADBAND ROW LOOMS AS OFCOM AGREES TO REVIEW LEVEL OF BT LINE SHARING CHARGES

Ofcom is to consider BT's (BT.L: Quote, Profile, Research, Stock Buzz) claim for extra flexibility on the amount it charges broadband rivals for accessing its network, amid expectations competitors will argue any increase in the amount they pay for products could acutely disrupt Britain's broadband development. The regulator announced it is "aware of BT's concerns with respect to revenue and profit level in the future", with any formal review to be effected this year. Citigroup's Mike Williams said any increase in charges to groups accessing BT's network would "cause a bit of an issue for the retail providers of broadband as to whether they pass it on to their customers or not".

FIVE HOPES NEW SOAP WILL HELP IT OUTGROW NEIGHBOURING CHANNELS

Five saw its advertising revenue increase by 8.2 percent in 2007 -- a rate of growth that it says the acquisition of Australian soap Neighbours will help it maintain. Advertising generated 314 million pounds for the group last year, up from 2006's 290.3 million pounds. Chief executive Jane Lighting said: "Five is doing better than a lot of people think it is. We grew faster than the market last year and we think we can do the same again this year." She said that she expects Neighbours to "absolutely grow overall share in 2008".

The Daily Telegraph

BT DECIDES TO HANG UP ON FUSION