18th Nov 2015 13:41
LONDON (Alliance News) - Telecoms regulator Ofcom has called a move by BT Group PLC to bill a GBP1.7 million charge related to its acquisition EE Ltd to its Openreach division as "inappropriate", the Financial Times reported Tuesday.
In a consultation document released by Ofcom last Friday the regulator ruled that "BT must not attribute costs in connection with BT Group's acquisition of EE to business connectivity services."
A wider GBP27 million cost relating to BT's GBP12.5 billion deal to buy EE will be considered in later Ofcom consultations.
"This is just another demonstration of the conflict of interest that BT?s ownership of Openreach creates," A telecoms executive told the Financial Times. "Regardless of the amount, money from Openreach shouldn't be diverted to pay for the other activities of BT Group," the executive added.
http://www.ft.com/cms/s/0/c37a1608-8d11-11e5-94a4-639039952d45.html#axzz3rq46ZbmA
Shares in BT were down 0.8% at 488.85 pence Wednesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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