British telecoms watchdog Ofcom has forced BT to drop the price of its broadband packages in rural communities where lack of competition means ISPs can charge whatever they want because of lack of competition.
Although prices in large towns and cities have fallen in recent years, some areas of the UK with less coverage suffer from price fixing because providers have a virtual monopoly according to thinq_
Ofcom will force prices down in areas where no other ISP is in place and there has been no local-loop unbundling, whereby other operators get access to BT's broadband infrastructure.
Wholesale broadband pricing will dropped to a rate 11 per cent below inflation this year which will mean lower bills for some three million homes in Scotland, Wales, Northern Ireland, and the south west of England, Norfolk, Yorkshire, Cumbria, and Northumberland.
"Ofcom’s charge controls could narrow the difference between prices that consumers in rural and urban areas are paying for broadband services," a spokesperson claimed in an official statement. "This difference is mainly due to the more limited set of offers available which is a result of the higher costs of delivering broadband to customers in rural areas."