Feeds

Ofcom calls on BT Openreach price cuts for ISPs

Wholesome wholesale

Next gen security for virtualised datacentres

Ofcom is pushing for a price fall in broadband and landline services, after the telecoms watchdog said today that BT would have to slash charges it currently dishes out to providers that use its network.

The regulator has proposed lower prices for BT's wholesale wing of its business that gives other ISPs access to install their own kit in the telcom giant's Openreach exchanges, as well as allowing those providers to rent lines from the company.

Under the proposals, BT's Local Loop Unbundling (LLU) and the Wholesale Line Rental (WLR) services have been targeted for price cuts by Ofcom.

It called on price reductions of the company's LLU service to drop between 1.2 per cent and 4.2 per cent every year. The regulated price for that service is currently set at £89.10 per year.

Ofcom proposed that a shared unbundled line to a property, where an ISP uses a proportion of the line only for the provision of broadband, should see the wholesale price fall by between 11.6 per cent and 14.6 per cent every year. It's currently got an annual price tag of £15.04.

The watchdog added that BT's WLR service, currently set at £103.68 per year, should see a price reduction of between 3.1 per cent and 6.1 per cent every year.

Ofcom has launched a consultation based on its proposal and plans to publish a statement in autumn 2011 detailing the prices it has settled on with BT.

"BT invests more than any other company in the UK’s communications infrastructure, so it is critical that it is able to achieve a fair rate of return in order to continue its investment in copper and fibre based services," said the company.

"Upon initial review, we are encouraged by Ofcom's recognition of this fact, but would question some of the underlying assumptions being used. As a result, we will be raising such concerns with Ofcom during the consultation process."

In May 2009 BT complained about Ofcom's changes to wholesale prices, by grumbling that it would effectively make a loss on each connection. ®

Boost IT visibility and business value

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
PwC says US biz lagging in Internet of Things
Grass is greener in Asia, say the sensors
Ofcom sees RISE OF THE MACHINE-to-machine cell comms
Study spots 9% growth in IoT m2m mobile data connections
O2 vs Vodafone: Mobe firms grab for GCHQ, gov.uk security badge
No, the spooks love US best, say rival firms
Ancient pager tech SMS: It works, it's fab, but wow, get a load of that incoming SPAM
Networks' main issue: they don't know how it works, says expert
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.