Ruling against Ofcom welcomed by CityFibre

CityFibre said it was “pleased” with a ruling from the Competition Appeal Tribunal this week, which found unanimously against Ofcom’s market definition rules in the regulator’s 2016 Business Connectivity Market Review (BCMR).

The AIM-traded developer and operator of fibre-optic networks said the finding effectively annulled the 2016 BCMR, remitting it back to Ofcom for reconsideration.

It had initially lodged an appeal against the BCMR in July 2016, due to its concerns that the regulation could harm competitive investment in full-fibre infrastructure to businesses.

Both BT and TalkTalk also lodged appeals with the tribunal.

“We welcome the tribunal's decision, which is very positive outcome for all companies investing in full fibre infrastructure,” said CityFibre director of strategy Mark Collins.

“We have consistently argued that Ofcom's regulatory framework must, at its core, support competitive investment across the UK's digital infrastructure.

“Our decision to appeal the BCMR was based on our strong belief that Ofcom's BCMR regulation did not support this objective.”

CityFibre said the BCMR has been the foundation for the pricing controls of all leased lines and the basis for Ofcom's dark fibre access remedy.

As a result of the tribunal's ruling, those remedies could not now be introduced in the form prescribed in the BCMR, and Ofcom must now undertake a new review in consultation with the industry, CityFibre claimed.

Its board described it as a “positive outcome” for CityFibre and supports the company's decision to lodge the appeal in order to protect its shareholders' interests.

“We look forward to a productive dialogue with Ofcom going forward, shaping a regulatory environment that encourages investment, supports competition and delivers better outcomes for enterprises and businesses,” Mark Collins added.