Ofcom want cheaper broadband from BT

31 March 2011

bt-logoOfcom (them again) are pushing for broadband and landlines to be cheaper after they said that BT would have to cut their charges that they demand from those that use their network.

The watchdog have proposed lower prices for BT's wholesale wing that gives other ISPs access to install their own kit in the telcom giant's Openreach exchanges. If BT lower their price, everyone else can too, presumably.

Ofcom are gunning for BT's Local Loop Unbundling (LLU) and the Wholesale Line Rental (WLR) services.

BT's LLU service has been asked to drop between 1.2 per cent and 4.2 per cent every year. Ofcom have also requested that a shared unbundled line, where an ISP uses a proportion of the line only for the provision of broadband, should see a drop in price between 11.6 per cent and 14.6 per cent.

The regulator would also like to see BT's WLR service a fall between 3.1 per cent and 6.1 per cent every year.

BT say: "BT invests more than any other company in the UK’s communications infrastructure, so it is critical that it is able to achieve a fair rate of return in order to continue its investment in copper and fibre based services. Upon initial review, we are encouraged by Ofcom's recognition of this fact, but would question some of the underlying assumptions being used. As a result, we will be raising such concerns with Ofcom during the consultation process."

TOPICS:   Technology   Mobile

1 comment

  • Zleet
    If Ofcom really want to punish someone for gouging with overinflated prices they should set their sights on Sky television. £10 for every multiroom and £10 on top of that for every multiroom you want to turn HD.

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