Ofcom fibre margin squeeze test: Putting pressure on BT Sport costs

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Ofcom fibre margin squeeze test: Putting pressure on BT Sport costs

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Ofcom fibre margin squeeze test: Putting pressure on BT Sport costs
Ofcom has decided to implement a fibre margin squeeze test on BT, starting in March, which will include the costs of BT Sport as part of the calculation.
Ofcom has stated that on its preliminary figures, BT does currently pass the test, but given earlier statements we conclude that it does not have a lot of headroom.
This will make it challenging for BT to absorb the extra costs for its Champions League rights hitting from July without breaching the test, and even harder to absorb an increased cost for Premier League rights, reducing its incentive to bid aggressively in the upcoming auction.