Sky, TalkTalk Reluctant to Reduce Broadband Pricing

Sky and TalkTalk have denied following suite and reducing rates of their services despite the recent cut-down in the wholesale broadband price.

Ofcom, after introducing a reduction in the whole broadband price expected firms rendering internet services to extend the same benefit to their customers by reducing broadband subscription prices.

However, Sky executives, in a bid to handle the issue tactically, said that it will take them some time for analysing the decision taken by Ofcom and the potential effect a price reduction could eventually result in. The executives also said that it is Sky's prime concern for creating value propositions for their prospects, but after all the bottom line also governs their decisions.

Sky and TalkTalk, in an attempt to save their skin from further criticism said that, this curtailment is BT wholesale prices, have relieved them from the earlier pressure of skyscraper prices of BT Openreach. Sky and TalkTalk, expressing their discontent over the decision of Ofcom, said that they do not see rationality in some of the points, introduced by Ofcom in the recommendation scheme.

BT sees the proposal of Ofcom, as completely militating against its bottom line figures, given the high investment policies on which BT resides.

[Source: The Inquirer]