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TalkTalk accuses BT of 'accounting tricks'

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29th Nov 2013
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A telecom company has raised concerns about BT's accounting methods, including moving nearly £120m of costs onto customer broadband bills this year.

Talk Talk said it was “shocked” by BT’s accounting, which reallocated costs in a way that means the former state operator is able to automatically recoup them from the wider industry, the Telegraph reported.

A TalkTalk spokeswoman told the newspaper: “It is simply wrong that BT is using accounting tricks that will increase people’s bills."

BSkyB has also raised concerns over the move and called on watchdogs to act to protect consumers.

The row started after Ofcom, the communications regulator, asked BT to explain changes to how costs were allocated in its annual accounts this year. It was part of a regular review of how BT charges the rest of the telecoms industry for using its old copper-based network.

The report was submitted to Ofcom last month and has allowed rivals a detailed view of the changes.

The costs include £21m to cover compensation claims from telephone engineers who were deafened by using 1980s line-testing equipment.

A BT spokesperson told AccountingWEB: "BT published these proposed changes some months ago so we have been transparent from the start. The UK has one of the most heavily regulated telecoms markets in the world and our wholesale prices are amongst the lowest in Europe. There is intense competition at the retail level, something TalkTalk recognise themselves. Consumers have been getting fantastic value for money with broadband prices falling whilst speeds have been rising.”

“There is intense competition at the retail level, something TalkTalk recognise themselves. Consumers have been getting fantastic value for money with broadband prices falling whilst speeds have been rising.

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