Rivals face bill for BT pension deficit

1st Dec 2009 07:10

Telecoms regulator Ofcom has asked for views before deciding whether to reflect the cost of BT's growing pension scheme deficit in its charges to rivals that use its network.To date, Ofcom has used BT's reported pension costs, excluding deficit repair payments, when determining regulated prices.Ofcom is consulting on whether stakeholders believe there are good reasons for changing the current approach, and if so, how the approach should change, it said today.Under the current arrangement BT's Openreach division provides leased broadband and line rental at a set cost to operators without their own network such as Sky and Carphone Warehouse at a set fee.Ofcoms says it has not made a decision, but if allowance is made for BT's rising pension deficit wholesale regulated charges could rise by up to 4%. There are other possibilities such as amending BT's cost of capital and ongoing service costs, the regulator added.In November, BT revealed its final-salary pension scheme's deficit had more than doubled in the past six months to £9.3bn.