BT should not be allowed to raise its wholesale prices to help fill its £9 billion ($13.2 billion) pension deficit, U.K. communications regulator Ofcom said.
After an eight-month consultation with BT’s competitors, the regulator concluded that it had “not received compelling evidence from stakeholders which would justify a change” in fees, according to an Ofcom news release.
Ofcom will continue to review the question of whether BT should be able to hike rates to cover its pension deficit through the end of the year.
In February, BT said it would make deficit payments of £525 million at the end of each year to its £32 billion BT Pension Scheme, London, through 2011. In December 2012, those payments will increase to £583 million, then contributions will increase 3% each year through December 2026.