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Ofcom proposes plans for wholesale broadband price cuts

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broadbandUK telecoms operator Ofcom has announced proposed plans to reduce the wholesale prices of broadband and telephone lines over the next three years to encourage lower customer bills.

The proposals will entail dramatically reducing the cost that BT is able to charge other service providers to use its broadband and telephone lines, which should translate into cheaper consumer broadband bills.

Currently, other providers are charged up £93.27 by BT to rent the copper wire lines that provide telephone and broadband services to the majority of UK homes.

“These controls would reduce wholesale charges, which could be expected to lead to real-terms price reductions for consumers, communications providers pass on savings to their landlines and broadband customers,” Ofcom said.

The changes come after Ofcom recently published a report that found BT still held ‘significant market power’ in the delivery of broadband services.

Ofcom also said: “The proposed new pricing is designed to provide incentives to invest in networks while also ensuring that broadband and landline prices are affordable for consumers.”