Ofcom publishes responses to consultation on the treatment of BT's pension costs

Ofcom has published responses to its initial consultation on the treatment of BT's pension costs.  As BT's pension deficit payments have grown and the scrutiny of pension funds in general has increased, the question of whether BT’s pension costs should be recoverable through its charges for regulated services has become increasingly important.  In its response to the consultation, BT argues that it should be allowed to recover its pension deficit costs as these relate to the efficient ongoing cost of providing both retail and wholesale services.  Other stakeholders counter that BT could have already reduced the size of its pension deficit and that consumers should not have to pay for it through higher charges. 

Frontier (Europe) is currently advising UKCTA which is a trade association promoting the interests of alternative fixed line telecommunications companies.

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