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Broadband prices set to tumble under Ofcom plan to cap BT fees
Quote:
Under the proposed changes, BT's wholesale division, Openreach, would not be able to charge other providers more than £87.41 to rent its broadband and telephone services to a property in the 2012/13 financial year.
The cap is 4.5pc lower than the current limit of £91.50 a year, and would be ratcheted down a further 5.9 per annum after that.
Ofcom has submitted its proposals to the European Commission, which has separately called for tighter limits on prices for broadband, and is due to publish a final decision early next month.
It is the third time Ofcom has lowered the cap on BT's prices, but is at the most extreme end of previous guidance.
The regulator was widely expected to lower the cap on BT's prices, as it has done twice in the past, but yesterday's recommendations were at the most extreme end of previous guidance.
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