Sense: networks may 'fall foul' of cross-subsidy rules

Cheshire-based Sense Network's commercial director Steve Young told IFAonline that loss-making networks being subsidised by provider owners may breach FSA's rules on cross subsidisation - which first appeared in an RDR newsletter published on 30 August. Young explained if the provider is putting money into a loss-making network, the prices its firms charge will not reflect what it would be financially viable to charge if they were standalone.   This means the network and its firms are effectively being subsidised and the network would not be able to function on the charges without the...