Rival communications firm TalkTalk, has made a complaint against BT, regarding the difference in margin between BT’s retail and wholesale prices.

Ofcom has now responded by opening an investigation into the claim, that BT has used its position of market dominance to reduce the margins between the wholesale and retail costs of its products.

The accusations of the artificial reduction of margins have been levelled against BT’s new superfast broadband offering, which the company is looking to roll out across the whole of the rural UK, with the support of BDUK.

BT has succeeded in maintaining contract dominance across much of the BDUK program, with competitor Fujitsu pulling out of the bidding process.

The investigation from Ofcom will look into whether BT’s prices break EU and/ or UK competition regulation.

A TalkTalk spokesperson, said: “there needs to be tighter regulation in superfast broadband to ensure a level playing field and therefore deliver real benefits for consumers and businesses. We are pleased that Ofcom is taking this matter seriously and have decided there are reasonable grounds to investigate BT's wholesale fibre pricing”.

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