Skip to main content

Charging Principles: no change

Posted by malcolm on Wednesday, July 28th, 2004 at 18:11

Ofcom has published its consultation on the charging principles it intends to use in the future when determining the formula for the Administrative Charging by which it recoups its own running costs from regulated businesses.

Highlights for the communications sector are

  • Ofcom considered allowing businesses to deduct their Wholesale Costs from Relevent Income, but rejected this on the grounds that it would be too complicated and difficult to verify;
  • Ofcom does not intend to permit businesses to elect to pay in one lump sum their share of the government loan that underwrote Ofcom’s initial costs
  • There will therefore be no change to the existing charging basis for the telecoms sector
  • Ofcom intends to publish a list of businesses that are charged

Had it allowed a deduction for wholesale costs, Ofcom calculates that ISPs and telecoms resellers would, on average, win a 59% reduction in the levy. While some of this would be caused by some such businesses falling below the £5m threshold and so not paying any charges at all, so-called “Newer fixed-line operators” like Energis and Colt would still win a 20% cut in the levy. BT and Kingston, however, would face an 8% increase.

The full consultation is available as a PDF; responses are due by 30th September.

With over 770 members connecting from over 76 different countries worldwide, LINX members have access to direct routes from a large number of diverse international peering partners.

© London Internet Exchange, 2018 Registered office: London Internet Exchange Limited, 2nd Floor, Trinity Court, Trinity Street, Peterborough PE1 1DA United Kingdom . Registered in England, Number: 3137929
VAT Registration Number: GB 665 9580 82 Head office main telephone number Telephone: +44 (0)1733 207700 Fax: +44 (0)1733 207729

Web Design by Web Design by Bluestorm Design & Marketing

Leave Feedback


This site uses cookies to store information on your computer. Some of these cookies are essential to make our site work and have already been set. By using our site you accept the terms of our Privacy Policy.