Ofcom mulls changes to broadband pricing to help cover BT pension costs

Ofcom taking views on offsetting BT's pension fund deficit with higher wholesale charges

UK communications regulator Ofcom has launched a consultation into the how BT's pension costs will impact on the amount that BT network infrastructure provider Openreach will charge other ISPs.

The consultation will look at the impact on the provision of both phone lines and broadband connections.

In a statement Ofcom said: "We're consulting on whether stakeholders believe there are good reasons for changing the current approach, and if so, how the approach should change."

ISPs will be hoping that the consultation does not find in favour of higher wholesale charges.

Ofcom detailed the consultation's intention in its statement: "The consultation is looking to promote a debate on whether it is appropriate for Ofcom to maintain or change the approach it takes to the treatment of BT's pension costs."

It added: "If we [Ofcom] change our approach, any adjustments in wholesale charges would not necessarily be felt proportionately by consumers" – a statement that should come as some relief to non-incumbant ISPs.

Ofcom expects to publish a further consultation on BT's pension costs in spring 2010, with a statement to follow later in the year.