Ofcom puts BT's pension deficit under review

Ofcom this week has launched an investigation into whether BT Group PLC's pension deficit should be a factor when the incumbent carrier sets its wholesale service rates.

Although it's not clear how Ofcom will rule, it's possible BT Openreach could charge 4 percent more to competitive service provider customers such as Carphone Warehouse, which would mean that consumers would have to pay more for broadband and related telecom services.

Ofcom considers BT's pension payment costs, but not from the so-called top-ups that BT has to pay to make up for any deficits. Previously, BT said it would pay $863.7 million to make up for an unspecified deficit in its pension structure.

For more:
- Wall Street Journal via Dow Jones has this article

Related articles
U.K. local loop unbundling: 6 million lines and counting
Ofcom approves BT fiber push
BT announced the fiber plan last July
BT rolled out an FTTC test last September