While Ofcom yesterday rejected this assertion – a move that sent BT shares surging – it added that the group must allow 'rival operators to compete and make a profit'.
An Ofcom spokesman said yesterday that 'competition could be dampened' if BT was able to skew the price so that competitors couldn't make a return.
It warned that BT could 'acquire a significant share of superfast broadband subscribers' by abusing its prices, and that this would 'weaken retail competition, to the detriment of consumers'.
Ofcom yesterday said it would not probe BT – but said it would look at the margin BT made on its wholesaling every six months.
Ofcom will consult on the proposals, and will make a final decision later this year.
A spokesman added: 'We are really pleased that Ofcom is today announcing that it now proposes to start properly regulating fibre more effectively.
'Once implemented, these new rules will make British consumers and businesses better off.'
A BT spokesman said: '
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