Ofcom in price control move

Ofcom plans to enforce price controls on one of BT Openreach’s most popular broadband lines to help drive investment into superfast broadband.

The telecoms watchdog will cut the wholesale price BT’s infrastructure arm can charge rivals such as TalkTalk and Sky for lines with a download speed of 40 megabytes per second and an upload speed of 10 megabytes per second.

The move will see prices charged for the line falling from the current level of £88.80 per year to £52.77 in 2020-2021.

Ofcom said it expected companies to pass down the costs savings to customers in the form of lower bills.

Jonathan Oxley, Ofcom’s competition group director, said: “Our plans are designed to encourage long-term investment in future ultrafast, full-fibre networks, while promoting competition and protecting consumers from high prices.”

Openreach will maintain full control over the prices for lines with an even faster speed in the hope it will spur telecoms firms towards installing their own superfast lines to rival BT.

BT must allow rival broadband firms to use the Openreach network to sell internet services to customers.

The price controls come as part of a package of new rules demanding Openreach fixes faults and rolls out broadband lines at a quicker pace.

It also follows a record £42 million fine handed to BT by Ofcom on Monday over delayed cable installations.

The group will also have to pay out millions in compensation to rival firms.

Ofcom is introducing price controls on BT Openreach’s most popular broadband services.