Ofcom to investigate BT over fibre broadband network access

Ofcom has confirmed that it is to carry out an investigation on BT following claims that the company is charging other internet service providers too much to access its fibre broadband network.

The allegations came from rival TalkTalk, which says BT is squeezing margins between its upstream costs and downstream prices.

Ofcom will now look into whether or not the complaint can be upheld.

"We expect to gather further information using our powers under the Competition Act 1998 and to analyse this information," a statement from the organisation said.

BT has responded by saying it is disappointed with the news and that there is no evidence to suggest it is charging too much. A TalkTalk spokesperson said he is pleased the matter is being taken seriously.

In 2009, BT was given the freedom to set its own prices for fibre by Ofcom, which was aimed at covering the investment in infrastructure and associated risk.

Last month, BT insisted there is a "level playing field" in the UK's fibre optic broadband market, with customers able to have "plenty of choice".