Prices for broadband and landline calls could fall after regulator Ofcom proposed BT to cut the wholesale prices charged to other providers.
If the plans go through, the current price of £84.26 for fully unbundled lines, which enable Internet Service Providers (ISPs) to install their own equipment for telephone and broadband services in BT exchanges, could fall by up to 6% every year between April 2014 and March 2017.
BT’s Openreach division charges for access to its network other internet service providers (ISPs), including BT’s own BT Retail division. The changes could lead to telcos paying less for BT services, which in turn could result in cheaper broadband and telephone services for consumera, if ISPs decide to pass on these savings.
The proposed new prices are designed to provide incentives to invest in networks while also ensuring that broadband and landline prices are affordable for consumers.
The proposals were welcomed by TalkTalk, one of the firms that uses BT’s Oprenreach network to provide broadband services, but BT told V3 of concerns Ofcom may be underestimating the costs to BT of managing its network.
The proposals are open to consultation until September 25. These proposals are subject to further work by Ofcom on quality of service and fault levels on BT's copper network.
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