BT criticised over its accounting for network costs

RIVALS have criticised BT over its accounting, which they claim has been used to push costs into the industry.

Details of BT’s accounting were passed by it to Ofcom as part of a regular review of how the network operator charges for use of the grid.

TalkTalk said it was “shocked” at BT’s reallocation of costs, which saw tens of millions of pounds added into the running of the network, reported the Telegraph. This included £21m to cover compensation claims from telephone engineers who were deafened by 1980s line-testing equipment.

The cost of each consumer line has subsequently risen £7.31, to £109.88.

Both TalkTalk and BskyB have questioned the bill. BT has said it had always been “transparent” about its cost calculations.

Related reading