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Britain's communications regulator Ofcom said it had fined BT Group Plc's Plusnet 880,000 pounds ($1.1 million) for overcharging its customers.
Plusnet, a broadband and landline services provider, continued charging some customer after stopping their services, Ofcom said.
The regulator said the customers were overcharged by a total of more than GBP500,000.
The penalty includes a 20% reduction to reflect Plusnet's willingness to enter into a formal settlement, Ofcom said.