BT fined record £42m over internet delays

BT has been fined a record £42million after it risked damaging British businesses by taking too long to deliver superfast broadband connections.

The telecoms watchdog accused the company of dragging its feet in providing lines to rival telecoms operators, and then avoiding their claims for compensation.

It is the biggest fine Ofcom has ever handed out – dwarfing the next largest penalty for a telecoms provider of £4.6million, which was imposed on Vodafone last year.

And BT will also have to pay out £300million in compensation to its rivals, who were forced to provide a poor service to their customers because BT was too slow to connect them. The problem centres on BT’s Openreach division, which provides the physical network used by the vast majority of Britain’s broadband services.

Rival operators lease the Ethernet lines from BT – dedicated, high-speed cables used by large businesses and organisations such as hospitals, schools and libraries.

Strict rules stipulate that BT is supposed to connect rivals’ customers to the Ethernet within 30 days, or pay the company compensation. BT’s only get-out clause is if it encounters certain problems that ‘require more time to resolve’.

Ofcom found that the telecoms giant was using this excuse too liberally – applying it retrospectively over a ‘sustained period’.

The watchdog warned: ‘Not only did this harm other telecoms companies, but it was also likely to have harmed the UK businesses and consumers who rely on high quality, high-speed, broadband services every day.’

BT’s chief executive, Gavin Patterson, said ‘We take this issue very seriously and we have put in place measures, controls and people to prevent it happening again.’

Alex Brummer – Page 69