By Ofcom, BT (BT.L) was allowed to offer lower wholesale fiber pricing to broadband providers, which said the plan to increase speedier connection was not anti-competitive.
BT, the country’s largest internet and mobile operator, intends to offer Sky, Vodafone (VOD.L), and TalkTalk incentives to move consumers to its national fiber network.
Virgin Media O2 and “altnets” opposed Equinox 2.
“Our overriding objective is to bring better broadband to people across the UK, by promoting competitive investment in high-speed networks and making sure there’s a level playing field for all companies,” an Ofcom representative said.
“With this in mind, and based on the evidence available to us, we don’t consider (BT) Openreach’s new pricing discounts to be anti-competitive.”
BT’s boss’s claim that its fiber network expansion would “end in tears” for certain competitors delayed Ofcom’s judgment in March.
Investors were frightened by anything that may prevent broadband providers from switching consumers to BT’s fiber network, which underpins the multi-billion-pound construction, sending its shares down 4%.
The agency also requested extra time to review the many responses.
After Franco-Israeli billionaire Patrick Drahi boosted his shareholding to 24.5%, BT shares jumped 0.1% to 149 pence on Wednesday.
Openreach’s chief commercial officer, Katie Milligan, called the decision “good news for customers as it means lower prices and long-term certainty – encouraging the switch to faster, more reliable broadband connections.”
Virgin Media O2 said Ofcom needed resources to meet its strategic aims to scale fixed network competition.
“While we’re pleased Ofcom took more time to review these proposals, it must be prepared to act decisively in future to keep BT in check and protect its own long-term objectives,” a spokeswoman said.
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