Ofcom Wants BT To Cut Wholesale Price Of Line Rental

Telecom watchdog Ofcom has asked BT to reduce the price it imposes on other internet service providers to access to its network infrastructure, according to new reports.

Ofcom is pushing for a price cut on the telecom giant's wholesale access division, a move that industry experts believe, will result in the cost of broadband connections throughout the country being reduced.

Under the new proposals, BT won't be able to seek for any more than £87.41 annually for every single "fully unbundled" line, a tad less than the £91 it charges annually.

In addition, Ofcom has proposed that a reduction in the cost of shared unbundled lines from £14.70 to £11.92 per year with the price cut being implemented within the fiscal year 2012/13.

"BT could be forced to make further price cuts in subsequent years, with Ofcom setting the prices at a fixed percentage below the Retail Price Index," Barry Collins of PC Pro noted in his report.

According to Ofcom, a price cut is necessary as "Openreach has been found to have significant market power in the delivery of these services".

BT's end user monthly line rental charge currently stands at £14.60 although paying on a yearly basis allows you to cut it to £10.