BT – Margin squeeze

CRA supported BT in its successful defence of Ofcom’s investigation of complaints by THUS plc and Gamma regarding BT’s pricing of its Wholesale Calls product and its control of upstream call origination and call termination services.  This included advice to BT from an early stage in the investigation and the submission of a number of reports to Ofcom, including evidence and arguments demonstrating the absence of any actual or potential anti-competitive effects, reviews of the financial modelling performed by BT and Ofcom and our own financial model to test for margin squeeze together with an accompanying report.  Much of our effects arguments and modelling work was adopted in the Ofcom decision