UK communications regulator Ofcom plans to reduce the prices BT can charge Internet service providers (ISPs) in areas where it is the sole provider of wholesale broadband.
The regulator plans to introduce price cuts of between 10.75 per cent and 14.75 per cent below inflation, a move which will also increase the competition between other ISPs.
According to The Press Association, Ofcom believes that the price cuts could help provider cheaper broadband to nearly 3 million rural households.
Ofcom is to hold a period of consultation, after which it will publish a statement on and introduce the new controls.
A spokesperson for BT said: “BT understands Ofcom's desire to move from voluntary to more formal wholesale broadband pricing controls in the most rural parts of the country given this defined market is getting smaller as deregulation expands elsewhere.”
"It is key that the details strike the right balance between control and incentives to invest in rural areas. As the UK's main investor in rural broadband, we will engage fully in the consultation process which follows to make our case."