Ofcom orders BT Wholesale price cuts

The telecoms regulator is forcing BT to slash its prices in areas where it is the only broadband provider.

Cost cutting

Ofcom has forced BT to cut its Wholesale broadband prices in areas where it is the sole provider of internet connectivity.

By lowering the cost of leasing BT's broadband infrastructure, Ofcom hopes to encourage more competition from retail internet service providers (ISPs) in the often rural areas and to pass on cost savings to the consumer.

The regulator has proposed price cuts of between 10.75 per cent and 14.75 per cent below inflation.

"Ofcom's aim is to incentivise BT Wholesale to continue to improve its efficiency," said a statement from Ofcom. "This could make it cheaper for other communications providers to roll out services and should ultimately benefit consumers in those areas through lower prices."

Advertisement - Article continues below

The price cuts could influence up to three million homes in the UK 12 per cent of all households in areas such as the South West, Norfolk, Yorkshire, Cumbria and Northumberland, as well as remote areas in Scotland, Wales and Northern Ireland.

Ofcom also hoped the changes would help improve broadband speeds as ISPs would be able to buy more capacity. It also confirmed it would exclude ADSL 2+ connections from the price cuts, encouraging BT to invest in the new technology that could carry much faster speeds over copper networks.

The new pricing is set to come into effect in the summer.

Featured Resources

The IT Pro guide to Windows 10 migration

Everything you need to know for a successful transition

Download now

Managing security risk and compliance in a challenging landscape

How key technology partners grow with your organisation

Download now

Software-defined storage for dummies

Control storage costs, eliminate storage bottlenecks and solve storage management challenges

Download now

6 best practices for escaping ransomware

A complete guide to tackling ransomware attacks

Download now


Network & Internet

BT unveils barrage of new business services

9 Oct 2019

Most Popular

Microsoft Azure

Microsoft, not Amazon, is going to win the cloud wars

30 Nov 2019
Mobile Phones

Pablo Escobar's brother launches budget foldable phone

4 Dec 2019
wifi & hotspots

Industrial Wi-Fi 6 trial reveals blistering speeds

5 Dec 2019

Five signs that it’s time to retire IT kit

29 Nov 2019