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Superuser
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BT fined £42 million for fudging late broadband payments

https://www.engadget.com/2017/03/27/bt-openreach-ofcom-42-million-fine/?sr_source=Twitter

 

 

Ofcom's crackdown of BT and Openreach continues. The UK regulator has dealt the pair a £42 million fine for late broadband installations fitted on behalf of rival internet service providers, such as Sky and Virgin Media. Openreach handles the bulk of Britain's broadband infrastructure -- so to keep the market fair, it's legally obliged to set up new lines within 30 working days. Inevitably, Openreach encounters problems and occasionally can't meet that deadline. In exceptional circumstances, it can assume a contract extension by the ISP and reduce the compensation it would normally have to pay. However, Ofcom found that BT did this "retrospectively over a sustained period" to avoid fines. Tut-tut.

As the BBC reports, £42 million is a record fee for Ofcom. It would have been higher, however BT was given a 30 percent reduction because it admitted full liability, and agreed to set up a scheme to compensate the companies affected. "The size of our fine reflects how important these rules are to protect competition and, ultimately, consumers and businesses," Gaucho Rasmussen, investigations director for Ofcom said. BT has also been fined £300,000 for its failure to provide information to Ofcom, both in this case and the Business Connectivity Market Review.

BT has apologised "wholeheartedly" for its mistakes, which Ofcom says occurred between January 2013 and December 2014. "This shouldn't have happened and we fully accept Ofcom's findings," Clive Selley, CEO of Openreach said. "This issue is unrepresentative of the vast majority of work conducted by Openreach and we are committed to delivering outstanding service for our customers."

The fine is one of many measures taken by Ofcom to clean up the UK's internet, mobile and TV sectors in recent months. After a long and divisive review, it forced BT to spin off Openreach as its own, "legally separate" company. Last month, the regulator proposed plans that would cut BT landline rental for two million customers by £5 per month. The moves will, inevitably, be welcomed by BT's rivals in the UK. For the company in question, however, it's a pretty rough start to 2017. "We will make sure the same mistakes aren't repeated in the future," Selley added today.

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cybmole
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Re: BT fined £42 million for fudging late broadband payments

not sure what to hope for with Virgin. if they cop a similar file for their installation failings, they will just collect it from us via  another price rise 

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Sephiroth
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Re: BT fined £42 million for fudging late broadband payments

I don't think it's a systemic problem with Virgin Media. BT were in a conflict of interest position - namely BTW/BTR versus the others (Sky, Talk Talk etc).

Seph - ( DEFROCKED - My advice is at your risk)

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Superuser
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Re: BT fined £42 million for fudging late broadband payments


cybmole wrote:

not sure what to hope for with Virgin. if they cop a similar file for their installation failings, they will just collect it from us via  another price rise 


Different scenario. This solely ties into the fact about BT's long running corruption with it's control over BT OpenReach (OR.) They told OR to roll out the red carpet for anyone signing up to BT Retail in terms of install dates (always ensure they're at the top of the pile) and make anyone signing up via 3rd parties like Sky etc wait a life time for their install (de-prioritize them.) BT have been using their control over OR for too long to game the system.

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Any opinions expressed by myself are entirely my own and do not represent Virgin Media in any way.
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vircom
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Re: BT fined £42 million for fudging late broadband payments

At the end of the day a companies only source of income is its customers, so they will pay.

If you could fine the Board Members they might take more notice.
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Buffer6
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Re: BT fined £42 million for fudging late broadband payments

I agree with what has already been said, all large utilities pass on fines that they incur in doing business to their customers by way of costs and running expenses the only benifit is to the courts system and many wonder where the large sums of money go, do they have to pay taxes on their earnings ?Smiley Wink