Shares in telecoms giant BT Group slipped around two per cent on Wednesday after the regulator Ofcom launched a formal investigation into whether it provided inaccurate or incomplete customer service data through its subsidiaries EE and Plusnet.
Ofcom investigation details
The UK watchdog announced it is examining whether BT complied with legally binding information requests issued in December 2023 under the Communications Act. These requests were used to compile Ofcom's latest 'comparing customer service report'. BT's mobile arm, EE, and its broadband provider, Plusnet, were asked to submit detailed data on customer experiences, including those who had placed orders or entered into contracts for fixed phone and broadband services.
However, Ofcom stated that initial evidence suggests 'some' of the responses may not have been 'complete and/or accurate', raising concerns about whether the company met its statutory obligations. The regulator emphasized that its information-gathering powers are central to monitoring the telecoms market and ensuring fair outcomes for consumers. Providers are legally required not only to respond in time but also to ensure the data they supply is reliable.
Investigation scope and potential penalties
The investigation will now assess whether there are reasonable grounds to believe BT breached those requirements. Ofcom said it will gather more evidence before deciding on any enforcement action. BT shares slipped around two per cent to 212p following the announcement.
While Ofcom has the power to impose fines of up to 10 per cent of annual turnover, any penalty is likely to be significantly smaller if the issue relates to reporting failures. Broadband Genie's Alex Tofts commented: 'Ofcom has the power to fine BT up to 10 per cent of its relevant annual turnover. For a corporation of BT's size, with revenues exceeding £20bn, this could theoretically reach into the billions. However, history suggests that for information-sharing failures, any fine would be much more modest, though still significant.'
Previous cases have shown relatively limited financial penalties. BT was fined £70,000 in 2018 and £42,500 in 2021 for similar breaches. Meanwhile, O2 was fined £150,000 in 2021.
Impact on customer service rankings
The data in question feeds directly into Ofcom's annual customer service rankings, which are used by customers to compare providers and by the regulator to track industry performance. Tofts added: 'Accuracy in these statutory reports is essential; they create the benchmarks and offer insight for Ofcom to spot industry trends.'
The probe also comes despite relatively strong headline performance from the mobile giant's brands in its most recent report. Plusnet ranked highest in the industry with 91 per cent overall satisfaction, while EE scored above the market average. The case underscores the ongoing scrutiny of the UK telecoms sector as regulators push for higher service standards and greater transparency.
City AM has approached BT for comment.
