Ofcom is proposing lower prices that Openreach, BT’s network access division, can charge other telecoms providers for some of its main wholesale services. Ofcom regulates these prices because of the significant market power that BT holds in this sector.
The proposal covers wholesale charges for telephone and standard broadband services delivered to homes and businesses over BT’s copper network. Ofcom said the new prices would be linked to inflation (measured under the consumer price index, or CPI).
- Fully unbundled lines: the regulated wholesale price for this service today is £84.26 per year. Under Ofcom’s proposals this will fall in real terms by between CPI − 0% and CPI − 6% every year;
- Shared unbundled lines: the regulated wholesale price today is £9.75 per year. Under Ofcom’s proposals this will fall in real terms by between CPI − 8% and CPI − 12% every year;
- Wholesale line rental: the regulated wholesale price today is £93.27 per year. Under Ofcom’s proposals this will fall in real terms by between CPI − 2% and CPI − 8% every year.
A public consultation is underway.
http://media.ofcom.org.uk/2013/07/11/ofcom-proposes-new-prices-for-landline-and-broadband-services/
