Ofcom to review landline and broadband pricing structures
Communications regulator Ofcom has announced proposals to review the wholesale charges levied by Openreach, BT’s network access division, to other telecoms providers.
This could result in lower prices for landline and broadband consumers as Ofcom seeks to curb BT’s ‘significant market power’
Specific proposals entail revisions to the ‘charge controls’ on some Openreach products which would reduce wholesale charges which it hopes will be passed onto consumers by communications providers.
It would also provide incentives for further investment in the network.
Ofcom’s proposals entail reducing the regulated wholesale price of unbundled lines of £84.26 by between 0 and six per cent every year with shared unbundled lines, currently priced at £9.75, dropping by between 8 and 12 per cent per annum.
Wholesale line rental meanwhile would fall from its present level of £93.27 by between 2 and 8 per cent each year.