Thursday, January 20, 2011

GreenBkk Tech | Rural UK could get cheaper broadband under Ofcom plans

Rural UK could get cheaper broadband under Ofcom plans

The proposals could benefit about 12% of UK households

Rural parts of the UK could be set for cheaper broadband under plans set out by the communications regulator.

Ofcom has proposed reductions in the prices BT can charge internet service providers (ISPs) in parts of the country where BT is the sole provider of wholesale broadband services.

Ofcom 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.

It is mainly in rural areas where BT is the only provider of wholesale broadband services.

Ofcom said its proposals could increase competition between retail ISPs.

After a period of consultation, Ofcom expects to publish a statement in the summer, shortly after which the price controls are planned to come into effect.

A spokeswoman for BT said: "It is key that the details strike the right balance between control and incentives to invest in rural areas.

"As the UK's main investor in rural broadband, we will engage fully in the consultation process which follows to make our case."

Credit: BBC (www.bbc.co.uk)


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