Yesterday's news that Ofcom, the new communications regulator, is looking to squeeze BT's wholesale prices for broadband has met a mixed reaction from the industry.

AOL UK welcomed moves that could lead to increased competition in the UK's wholesale ADSL market, claiming it was a "significant step forward for broadband in the UK".

However, AOL warned those involved not to get bogged down in the consultation process but to work towards a "prompt outcome".

John Pluthero, former boss of Freeserve and now chief exec of Energis, struck a more sceptical tone.

"The market review says nothing new - as ever it's jam tomorrow," he said.

"Four years on there is still no broadband revolution - instead we have one supplier, one product and one price. Tomorrow never comes - the broadband revolution is on hold until further notice."

Tiscali UK's chief exec, Mary Turner, was equally dismissive, saying that any move to increase wholesale broadband was welcomed, but "so far there is no substance - just intention".

Instead, she called for activation and migration charges to be slashed to reflect the true cost of these processes, rather something imposed by BT. ®

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