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BT ordered to cut cost of Net access

Don't you love it when Oftel talks tough?

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Oftel is to force BT to cut the cost of its wholesale unmetered dial-up Internet access by 8.5 per cent.

In a ruling published today the telecoms regulator said that it was able to impose the price cut following a review of BT charges.

Originally, Oftel had recommended that the price be cut by 7 per cent but decided to nudge-up the discount by a little more instead.

OK, so does this mean that dial-up Net users will see their bills come down in price? Don't hold your breath - we reckon it'll just help improve margins for those in the sector.

And is this "enforced" price cut likely to cripple BT's finances? Don't be silly. Those in the know estimate that BT Wholesale will take a hit of around £10m - something it can easily recoup by flogging more broadband. ®

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