Specifically, TalkTalk Group thinks BT Infinity retail prices are too low. Yes, too low. The problem, as TalkTalk sees matters, is that very low BT Infinity prices are so low that TalkTalk has little room to buy wholesale capacity from Openreach and sell at retail against the BT pricing umbrella.
In other words, BT is engaging in predatory pricing intended to damage its competitors, TalkTalk alleges.
Ofcom has opned a proceeding to consider the charges. A 2010 comparison of "superfast" services in a number of countries (it always is difficult to compare prices in terms of local purchasing power, or percentage of household income, across nations) might not suggest U.K. prices are so low.
The issue is that BT cannot price in a predatory manner, as a dominant provider in the U.K. market.
Broadband Service Speed and Price (High Tier)
Country | Downstream | Upstream | Price |
Canada[3] | 25 | 7 | $67 |
Denmark[4] | 40 | 2 | $72 |
Finland[5] | 24 | 1 | $67 |
Hong Kong[6] | 100 | Unlisted | $38 |
Japan[7] | 200 | 100 | $60 |
South Korea[8] | 100 | Unlisted | $29 |
Sweden[9] | 100 | 100 | $46 |
Taiwan[10] | 100 | 5 | $37 |
U.K.[11] | 50 | Unlisted | $57 |
United States[12] | 50 | 20 | $145 |
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