BT hit with £342m fines, com­pen­sa­tion

New Straits Times - - Business World -

LON­DON: BT Group Plc will pay about £342 mil­lion (RM1.89 bil­lion) in fines and com­pen­sa­tion af­ter the com­pany failed to ad­e­quately re­im­burse other providers for de­lays in­stalling high-speed broad­band ca­bles.

United King­dom com­mu­ni­ca­tions reg­u­la­tor Of­com or­dered BT to pay a record £42 mil­lion fine for re­duc­ing com­pen­sa­tion to other com­pa­nies that rely on its net­work when it didn’t de­liver busi­ness eth­er­net ser­vices on time, it said on Sun­day.

BT will also pay about £300 mil­lion as com­pen­sa­tion to the other car­ri­ers, though the amount may still change.

The re­buke is an­other blow to BT over its net­work divi­sion Open­reach, which the com­pany agreed to legally sep­a­rate this month, as the reg­u­la­tor seeks greater in­de­pen­dence and more spend­ing on full-fiber broad­band.

The penalty is the largest is­sued by the reg­u­la­tor, top­ping a £3.7 mil­lion fine of Voda­fone last year for poor cus­tomer ser­vice aris­ing from an over­haul of its billing sys­tem. Bloomberg

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