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Friday, 21 January 2011

Cheaper Broadband for Rural areas under Ofcom plans

This Summer, following a period of consultation, Ofcom are expected to publish plans that could mean cheaper broadband for rural Britain.

The proposal is that Ofcom will instill pricing controls on BT in parts of the country where they are the sole provider of wholesale broadband services.  This will affect how much BT can charge internet service providers (ISPs) in those areas.  The hope is that the changes could increase competition between retail ISPs.
The telecom regulator wants BT to reduce its wholesale charges by between 10.75% and 14.75% below the RPI measure of inflation. The plan could benefit an estimated three million homes and businesses.
Whilst Consumer Focus welcomed the move by Ofcom, they have highlighted the fact that in some remote areas people were still waiting for broadband to reach them, and the emphasis needs to remain on government plans for everywhere in the UK to have faster broadband by 2015.

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