Broadband prices to fall as Ofcom investigates BT

Home telephone and broadband services are likely to become cheaper as telecoms regulator Ofcom forces dominant network provider BT Openreach to reduce its prices.

Ofcom proposes dramatic rate reductions to the charges levied on other communications providers such as Sky and TalkTalk by Openreach, who manage BT's network.

Virgin Media customers will be unaffected by the changes, because the company uses its own network. If current plans are adopted, the cost to BT's competitors of taking over, sharing or renting a cable line could drop by as much as 10 per cent a year.

"Ofcom expects its proposed prices to lead to real term price reductions for consumers, as communications providers pass on savings to their landline and broadband customers," a spokesman said.

Once the consultation process for these proposals ends on June 9, the results will be published in autumn, and any resulting price changes will come into effect by the end of the year.

BT plans to raise its concerns about the reductions, which are due to last for three years, during the consultation process.

Read a full report at BBC News. ·