Telecom Regulators reject BT’s bid to increase Wholesale Charges

Posted: July 27th, 2010

The UK Telecom giant, British Telecom’s attempt at increasing wholesale charges was rejected by telecom regulators. Telecom regulators see no reason to increase wholesale charges just because the company has to pay £9 billion as pension fund deficit.

This is welcome news for companies BSkyB and Cable Wireless, but British Telecom will be in trouble if it does make alternate arrangements to fill the gap in the pension fund. Struggling to stay afloat, the company is already battling with the unions, while implementing various cost cutting initiatives. In addition, the company has to pay £525 as top up fees every year.

British Telecom has a high deficit in the pension fund and if it is not resolved soon in the short or medium term, it will continue to have a huge impact on the company’s resources. There were initially hopes that the government guarantee would cover the pension scheme but nothing materialized.

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This entry was posted on Tuesday, July 27th, 2010 at 4:41 am and is filed under Bridging Finance . You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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