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A complaint by BT against Ofcom regarding its broadband prices has been dismissed in court.

The provider objected to Ofcom's margin squeeze test, which restricted the amount BT could charge to other companies that wanted to access its superfast broadband infrastructure.

BT was required to maintain a reasonable difference between these prices and the costs of its broadband bundles featuring phone and TV deals, in order to allow other providers to remain competitive and profitable.

However, BT argued that while some form of price control was required, Ofcom's approach stood in the way of its efforts to expand and challenge Sky in the pay-TV market.

The challenge was taken to the Competitions Appeal Tribunal, which referred it to the Competition and Markets Authority (CMA).

The organisation has dismissed BT's argument and insisted that the margin squeeze test by Ofcom is fair.

However, one small concession in BT's favour was made, with price caps now having to be revised every six months instead of on a monthly basis.

Speaking to the Telegraph, a spokesman for BT commented: "The CMA found that Ofcom’s test is too restrictive and doesn’t allow us enough flexibility."

Nearly six million homes are currently connected to BT Openreach's fibre-to-the-cabinet network, although not all of these actually purchase their broadband services from BT.


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