Users Could Face Higher Broadband Bills Because Of BT Price Hike

Ofcom has mentioned that it will consider BT Openreach plans to charge its competitors for letting them use its network and the quantum will be based on its own assessment.

If BT’s price hike goes through, users may end up forking out more money for their phone and Internet bills.

As of now, BT charges its rivals an annual fee of £81.69 per broadband user for letting them put up their own lines in BT’s exchanges.

Openreach said that a price hike is necessary as the total fees it receives from its competitors is not sufficient to cover the £1billion that it spends every year on improving the system and pointed out the fact that the company had not increased its charges in the three years since it started.

In response, the competitors say that Openreach is very inefficient and that the quality of services that the company provides does not justify a hike in charges.

However, Ofcom seems to agree that Openreach should be allowed to charge a little more for its services, but only a little more and not as much as it wants to.

BT’s competitor’s have warned that this would lead to higher customer bills and may even retard the spread of the high-speed Internet services.