BT 2015 Annual Report Download - page 41

39
Overview
The Strategic Report
Purpose and strategy Delivering our strategy
0ur lines of business Group performance Governance Financial statements Additional information
Impact of regulation
here were a nuber of reulator decisions and outcoes of appeals that aected us durin the ear and will ipact us in the future.
Fixed Access
and Wholesale
Broadband
Access Market
Reviews
 n une 01 fco copleted its reviews of both the
ied ccess aret coverin  U    and
 0 products and the holesale roadband ccess
 aret coverin strea atastrea and .
 fco continued to ipose chare controls on the arets
where we have . hese controls cover the three ears to
arch 01.
 urin this period the artificiall low price of full U will be
phased out to better reect the actual costs of providin the
service to s.
 fco did not ipose price reulation of wholesale fibre
broadband .
 or  fco enlared the sie of the area where
copetition is reater and where we are free to set prices
aswe wish.
Fibre
broadband
margin
 n a 01 fco opened an investiation followin a
coplaint which alleed that  has abused its doinant
position such that the arin between the prices 
onsuer chares for soe of its fibre broadband products
and the wholesale price chared b penreach for the
relevant networ inputs is insucient to allow other s to
copete profitabl.
 n ctober 01 fco closed the investiation havin
found no rounds for tain an action.
 eparatel in une 01 fco consulted on proposals
for an e-ante arin sueee test. fco issued its final
stateent in arch 01. fcos indicative assessent
was that we were liel to be ain a sucient arin to
pass the test.
 e are reuired to subit to fco a foral arin test
report deonstratin copliance before the end of a
01 and then ever si onths.
 e believe the desin of the test is awed and are
considerin our options includin an appeal.
Ladder pricing  adder pricin lins the level of  holesales terination
chares for hostin non-eoraphic nubers such as
000 0 nubers to the retail call prices chared b
obile networ operators s to their custoers for
callin such nubers.
 ur ladder pricin polic was disputed b the s. he
 found in our favour in uust 011 but this was
overturned b the ourt of ppeal in ul 01.
 n ul 01 we won an appeal to the upree ourt that
eans that s ust pa  outstandin chares for the
period startin prior to the  udent in uust 011.
 has now reached financial settleents with all the s.
 e also raised ladder chares in relation to other nuber
ranes which had also been disputed. hese were heard at
the  in ebruar 01.  and all the s have now
reached financial settleents in relation to those chares.
Pay-TV  n une 010  appealed to the  aainst fcos
decision to reulate  ports 1 and .
 n uust 01 the  decided in s favour. e
successfull appealed the s decision and in ebruar
01 the ourt of ppeal published its udent that the
 ust now reconsider the case.
  reuested perission to appeal the ourt of ppeal
udent at the upree ourt. his was reected b the
upree ourt in ctober 01.
 n oveber 01 the  ruled that  ust suppl
 ports 1 and  to  on  on an interi basis until
it has concluded its review of the case.  ports 1 and 
continue to be provided on igital errestrial .
 his allowed us to oer  ports 1 and  to our custoers
on our ouiew set-top bo.
 n arch the  held a hearin about which panel should
hear the case. n a the chairan of the panel decided to
recuse hiself fro hearin the appeal and a new chair will
need to be appointed. he  will also need to deterine
the process for reconsiderin the case as reuired b the
ourt of ppeal.
 n oveber 01 followin a coplaint b irin edia
fco opened an investiation under the opetition ct
199 and the reat on the unctionin of the uropean
Union into the oint-sellin arraneents of live UK broadcast
rihts for  reier eaue football atches.
 fco has consulted interested parties includin  and is
currentl in an inforation-atherin stae.
Ethernet
dispute appeal
 n eceber 01 fco issued final deterinations on
disputes over historic thernet pricin. fco concluded
that between pril 00 and arch 011 the prices we set
for certain thernet services were too hih resultin in an
overchare of 11 over this period. e disaree with the
deterinations and both  and the aected s appealed
various points to the .
 n uust 01 the  handed down its udent that
reected s appeal aainst the aount of the overchare
and uded that  should also pa interest on this aount.
his atter has been referred to fco.
 e disaree with the s udent and have applied for
perission to appeal to the ourt of ppeal.
Business
Connectivity
Market Review
 urin the ear fco bean its pre-consultation process
ahead of reviewin the business connectivit arets and
the associated leased line chare control.
 e epect the first round of consultations in sprin 01
with the new reulations applin fro pril 01.
 fcos review will consider aonst other thins the
erits of introducin a new passive dar fibre reed as
well as the scope for further dereulation reectin an
increasinl copetitive aret.
Wholesale
1DUURZEDQG
Market Review
 n pril 01 fco issued a call for inputs bein the first
stae in its review of the wholesale fied call oriination
terination and interconnection arets.
 he review will consider whether reulation of call
oriination is still appropriate and whether further chare
controls are reuired when the current controls end in
epteber 01.