BT web prices set to tumble
Ofcom rule could mean cheaper broadband
MILLIONS of households are expected to see “superfast” broadband prices fall – in a fresh blow to BT.
Regulator Ofcom wants to cap the amount the telecoms giant charges rivals such as TalkTalk and Sky for using its broadband network. At the moment they pay £88.80 a year in wholesale charges for each superfast broadband line they rent, but Ofcom is proposing to cut this to £52.77 a year by 2020.
Ofcom said: “We would expect these savings to be passed on to residential customers through cheaper prices.”
Telecoms analyst Dan Howdle of broadband advice site Cable.co.uk, predicted to cuts could be “substantial”.
There are an estimated 2.4 million non-BT customers currently taking superfast broadband with download speeds of up to 40 megabytes per second, those affected by the price cap.
The price controls are part of a package of new rules for BT’s Openreach arm in order to fix faults and roll out broadband lines faster. It comes after BT was hit with a record £42million fine by Ofcom earlier this week over delayed high-speed cable installations. It is also facing compensation costs to rivals of £300m.
Openreach said: “The UK needs a regulatory framework that encourages investment and rewards risk.” But Alex Neill of Which? said: “Far too many people are still frustrated by poor connections and slow speeds.”