BT to cut wholesale ADSL prices

But end user prices may rise

BT is expected to announce shortly a cut in the monthly wholesale charge for its ADSL service.

The announcement - which could come as early as tomorrow, according to sources - could see prices for a single ADSL user cut by between £1.50 and £2 to around £13 month.

But since this is a wholesale agreement it would be left up to ISPs to decide whether they will pass on the price cut to end users.

They may not do so. It's rumoured that these price cuts are likely to be accompanied by increased wholesale charges elsewhere.

The net result is that the overall wholesale cost to ISPs for ADSL could stay the same, or even increase.

The full picture of BT's price review is unlikely to emerge until BT makes its full announcement on the matter, ending weeks of speculation.

Rumours of price cuts have been circulating for the last couple of weeks, with BT dropping hints that a price review is on the way.

However, some ISPs have been confused by the signals seeping out of BT, with some claiming that the dominant telco is merely muddying the waters. ®

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