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Ofcom fines BT £6.3m for breaking rules in NI tender
11th Dec 2020 09:10
(Sharecast News) - UK regulator Ofcom fined BT £6.3m after it had failed to meet regulatory obligations during procurement for a major public sector telecoms services contract in Northern Ireland.
Ofcom said on Friday it had fined the company after the BT network division failed to give a rival company the same information as BT's own bid team during the tender for a public sector telecoms contract in Northern Ireland back in 2017/18.
The penalty also incorporates a 30% reduction to reflect BT's agreement to settle Ofcom's investigation by admitting full liability.
Between April 2017 and March 2018, BT and Eir bid for the 'Northern Ireland public sector shared network' contract which would provide shared data transfer services and calls to over 150 public sector organisations across the region across 2000 sites.
In the investigation carried out by Ofcom, the regulator found that BT's network arm broke our rules during this tender process, by failing to provide Eir with the same information about its Fibre to the Premises on Demand product as it did its own BT bid team.
It also failed to disclose to Eir the sustainability and cost of the product. The BT network arm told Eir that the FOD was not suitable and had "delivery limitations" while the BT bid team was told it could be used for major network projects.
Ofcom rules clearly state that BT should have treated all its wholesale customers equally as many telecom companies rely on access to BT's network to provide their services and stay competitive.
Ofcom stated that the breaches found did not seem deliberate.
Gaucho Rasmussen, Ofcom's Director of Enforcement, said: "BT's network arm broke our rules by failing to treat a rival company and BT's own bid team equally during the tender for a major public sector contract in Northern Ireland. Our fine reflects how important these rules are, and how seriously we take compliance."
Ofcom said on Friday it had fined the company after the BT network division failed to give a rival company the same information as BT's own bid team during the tender for a public sector telecoms contract in Northern Ireland back in 2017/18.
The penalty also incorporates a 30% reduction to reflect BT's agreement to settle Ofcom's investigation by admitting full liability.
Between April 2017 and March 2018, BT and Eir bid for the 'Northern Ireland public sector shared network' contract which would provide shared data transfer services and calls to over 150 public sector organisations across the region across 2000 sites.
In the investigation carried out by Ofcom, the regulator found that BT's network arm broke our rules during this tender process, by failing to provide Eir with the same information about its Fibre to the Premises on Demand product as it did its own BT bid team.
It also failed to disclose to Eir the sustainability and cost of the product. The BT network arm told Eir that the FOD was not suitable and had "delivery limitations" while the BT bid team was told it could be used for major network projects.
Ofcom rules clearly state that BT should have treated all its wholesale customers equally as many telecom companies rely on access to BT's network to provide their services and stay competitive.
Ofcom stated that the breaches found did not seem deliberate.
Gaucho Rasmussen, Ofcom's Director of Enforcement, said: "BT's network arm broke our rules by failing to treat a rival company and BT's own bid team equally during the tender for a major public sector contract in Northern Ireland. Our fine reflects how important these rules are, and how seriously we take compliance."