27th Jul 2017 07:00
For immediate release 27 July 2017
CITYFIBRE INFRASTRUCTURE HOLDINGS PLC
('CityFibre' or 'the Company')
Competition Appeal Tribunal's Determination of the BCMR Appeal
CityFibre (AIM: CITY), notes yesterday's publication of the Ruling of the Competition Appeal Tribunal's ('the Tribunal') findings in relation to the market definition issues arising in the Ofcom 2016 Business Connectivity Market Review ('BCMR').
CityFibre is pleased to report that the Tribunal's decision found unanimously in favour of the appellants arguments, and against Ofcom, effectively annulling the 2016 BCMR and remitting it back to Ofcom for reconsideration.
CityFibre originally lodged an appeal against Ofcom's BCMR on 6th July 2016 due to concerns that the BCMR regulation could harm competitive investment in full fibre infrastructure to businesses. TalkTalk and BT also lodged appeals with the Tribunal.
The BCMR has been the foundation for the pricing controls of all leased lines and the basis for Ofcom's dark fibre access remedy. As a result of the Tribunal's ruling, these remedies cannot now be introduced in the form prescribed in the BCMR. Ofcom must now undertake a new review in consultation with the industry.
This is a positive outcome for CityFibre and supports the Company's decision to lodge the appeal in order to protect our shareholders' interests.
Mark Collins, CityFibre's Director of Strategy and Public Affairs said:
"We welcome the Tribunal's decision, which is very positive outcome for all companies investing in full fibre infrastructure.
"We have consistently argued that Ofcom's regulatory framework must, at its core, support competitive investment across the UK's digital infrastructure. Our decision to appeal the BCMR was based on our strong belief that Ofcom's BCMR regulation did not support this objective.
"We look forward to a productive dialogue with Ofcom going forward, shaping a regulatory environment that encourages investment, supports competition and delivers better outcomes for enterprises and businesses."
For further information, please contact:
CityFibre Infrastructure Holdings plc | www.cityfibre.com |
Greg Mesch, Chief Executive Officer | via Vigo Communications |
Terry Hart, Chief Financial Officer James Enck and Morten Singleton, Investor Relations |
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finnCap (Nomad and Joint Broker) | www.finncap.com |
Stuart Andrews / Christopher Raggett / Anthony Adams (Corporate Finance) | Tel: 020 7220 0500 |
Simon Johnson (Corporate Broking) |
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Liberum (Joint Broker) | www.liberum.com |
Steve Pearce / Richard Bootle | Tel: 020 3100 2000 |
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Vigo Communications | www.vigocomms.com |
Jeremy Garcia / Fiona Henson | Tel: 020 7830 9700 |
About CityFibre:
CityFibre is the national builder of Gigabit Cities, as the UK's largest alternative provider of wholesale fibre network infrastructure. It has major metro duct and fibre footprints in 42 cities across the UK and a national long distance network that connects these cities to major data-centres across the UK and to key peering points in London.
The company has an extensive customer base spanning service integrators, enterprise and consumer service providers and mobile operators. Providing a portfolio of active and dark fibre services, CityFibre's networks address 28,000 public sites, 7,800 mobile masts, 280,000 businesses and 4 million homes.
CityFibre is based in London, United Kingdom, and its shares trade on the AIM Market of the London Stock Exchange (AIM: CITY). Further information on the company can be found at www.cityfibre.com
Note for Editors:
The Tribunal found unanimously that:
· Ofcom erred in concluding that it was appropriate to define a single product market for contemporary interface symmetric broadband origination services of all bandwidths
· Ofcom erred in concluding that the 'Rest of the UK' comprises a single geographic market
· Ofcom erred in its determination of the boundary between the competitive core segments and the terminating segments of BT's network.]
Related Shares:
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