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UK's Ofcom Moves To Reduce Wholesale Phone & Broadband Prices
engine




msg:4289999
 9:06 am on Mar 31, 2011 (gmt 0)

UK's Ofcom Moves To Reduce Wholesale Phone & Broadband Prices [bbc.co.uk]

It has revised the list of rates that Openreach, which manages BT's network, can charge other providers for using its services.

The first, called Local Loop Unbundling, allows telecoms firms to site their equipment in BT exchanges and take over lines to customers.

Ofcom wants the price Openreach charges when an operator takes over these lines completely to drop by between 1.2 and 4.2% every year. Where lines are shared it wants prices to drop by between 11.6 and 14.6% every year. To illustrate the potential numbers affected, Ofcom said there were about 7.6 million unbundled lines in the UK.

The second, called Wholesale Line Rental, involves telecoms firms simply renting lines from Openreach. Ofcom wants the prices of these to drop by between 3.1 and 6.1% every year. There are about 6.14 million WLR lines in the UK.

"Ofcom expects its proposed prices to lead to real term price reductions for consumers, as communications providers pass on savings to their landline and broadband customers," it said in a statement.



Earlier Story

UK's Ofcom Proposes Price Reduction On Rural Broadband [webmasterworld.com]

 

piatkow




msg:4290088
 12:37 pm on Mar 31, 2011 (gmt 0)

This sort of government interference is inevitable when you start privatising monopoly utilities.

engine




msg:4290180
 3:10 pm on Mar 31, 2011 (gmt 0)

As a user of the services, I welcome the news.

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