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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.

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.