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Ofcom rules on broadband charges

What else does 16p buy you these days?

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Critics of Ofcom should hang their heads in shame after the regulator managed to enforce tough price restrictions on the UK's dominant fixed line telco.

In August, BT cut the rental charge for fully unbundled lines from £105.09 to £80.00 a year.

But in a bid to ensure that the former monopoly didn't then sneak up prices at a later date, Ofcom proposed to set a ceiling of £81.85 for the cost of lines.

That, though, was just a proposal and subject to consultation. Now, Ofcom has made its decision and has put even more pressure on BT to keep prices low.

"Ofcom has set the fully unbundled rental charge ceiling at £81.69, which will take effect from 1 January 2006," said the regulator today.

That's an improvement of 16p - sixteen pence - and clearly a massive victory for the regulator and something that wil clearly stimulate demand for unbundled broadband. ®

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