Feeds

BT rejects wholesale price changes

Ofcom ain't done enough

Top three mobile application threats

BT is not happy with Ofcom's changes to wholesale prices, and is complaining it will effectively make a loss on each connection.

Ofcom sets prices for BT's wholesale division Openreach. From today until May 2010 BT can charge £86.40 for each unbundled line - up from £81.69. Where a broadband provider shares the line with BT, by only providing broadband, the telco can charge £15.60 - the same as last year. Other charges go up in line with underlying cost increases.

Ofcom's chief exec Ed Richards said: "The new prices will enable Openreach to earn a fair return whilst allowing continued strong consumer take-up of broadband at competitive prices."

But BT said: "Ofcom has taken a tentative step towards rebalancing the market but that step is insufficient and creates real disincentives for future investment. It was previously agreed that Openreach would be allowed to fully recover its costs and that is all we are asking for.”

The prices are certainly towards the bottom end of the range - Ofcom was expected to set prices between £85 and £91. Prices for shared lines were expected to go up to £16.20.

The regulator set maximum prices in 2006, but there was no way to adjust them for inflation or other changes.

Ofcom decided against setting new prices for wholesale line rental - where BT's network is used by rival telcos to provide telephony services - until after its review of the wholesale narrowband market. It is expected to report back on prices in that market shortly.

Ofcom's statement is here. ®

Combat fraud and increase customer satisfaction

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
Facebook splats in-app chat, whacks brats into crack yakety-yak app
Jibber-jabbering addicts turfed out just as Zuck warned
Google looks to LTE and Wi-Fi to help it lube YouTube tubes
Bandwidth hogger needs tube embiggenment if it's to succeed
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.