Sky and TalkTalk customers may not see price drop from Ofcom proposals

9 February 2012

internetAre you a customer of TalkTalk or Sky? Well, they may not be committing to passing on Ofcom's proposed BT price cuts, which is nice of them.

If you missed it, Ofcome proposed a reduction of up to 19 per cent in the amount that BT can charge rivals to rent lines through its wholesale Openreach network, which saw many assuming that savings would be passed on to consumers.

However, both Sky and Talk Talk have said they will not commit to cutting consumer prices.

A spokesperson for TalkTalk said: "The proposed LLU [Local Loop Unbundling] charges are within expectations. We are pleased that the charges are being reduced - this reflects that BT's charges have been excessive in the past."

BT of course, aren't happy at the notion that their wholesale prices will be reduced by Ofcom again, and look like they'll be appealing against the regulator’s decision. They disagree "with some of the underlying assumptions that they have used to determine these charge controls".

It added that it needed to "achieve a fair rate of return" in order to continue investing "in the future of the UK's communications infrastructure".

The Ofcom proposals have been submitted to the European Commission and a decision will be made in March, with price drops potentially taking place elsewhere by April.

TOPICS:   Technology   Broadband

2 comments

  • Roy
    "which saw many assuming that savings would be passed on to consumers" - really? There must be a lot of naive people around - this is Sky and Talk Talk, not exactly well known for putting customers (or service) before profit...
  • christopher R.
    So ofcom want to take money away from a company investing in the uks infrastructure and put it into other companies profits...great work ofcom

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