Feeds

BT scales back wholesale broadband price rises

But not by much

  • alert
  • submit to reddit

The smart choice: opportunity from uncertainty

BT has reduced the level of proposed price hikes for some of its wholesale broadband services following pressure from the industry and concerns that ISPs could go bust if they were allowed to go ahead unchecked.

However, the reduction in the amount extra ISPs will be charged is only small and still means that small ISPs face a hefty increase in overheads.

Last month, the cost of some wholesale services geared towards small ISPs went up by around 30 per cent causing many providers to warn such price rises would force them out of business.

BT insists the price rises are necessary for it to comply with "margin squeeze tests" set by the regulator.

Now BT has re-worked the figures and managed to shave off some of the increase. At a meeting last night between BT and the Internet Service Provider's Association (ISPA), the UK's dominant fixed line telco said the price rises would be reduced by between five or six per cent.

Although welcomed, the cut still means that small ISPs unable to benefit from economies of scale face a wholesale broadband price hike of around 23 - 24 per cent.

"Whichever way you look at it, it's still a big increase for small ISPs," said one industry insider, while another said it was "better than nothing".

ISPA described yesterday's meeting with BT as "constructive". ®

Related stories

Ofcom must answer broadband price hike charges - MP
New e-minister urged to intervene in broadband row
BT examines broadband price cuts
ISPs tackle Ofcom over BT broadband price hike
70 UK ISPs in anti-BT uprising

Mobile application security vulnerability report

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Microsoft unsheathes cheap Android-killer: Behold, the Lumia 530
Say it with us: I'm King of the Landfill-ill-ill-ill
All those new '5G standards'? Here's the science they rely on
Radio professor tells us how wireless will get faster in the real world
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.