Broadband and telephone line wholesale costs to decrease

Ofcom proposes new broadband prices

Telecoms watchdog Ofcom has called for BT Openreach to reduce wholesale telephone and broadband prices for communications providers.

The regulator has put forward new prices, which ultimately could lead to savings for consumers if they are passed on by BT rivals such as Sky and TalkTalk.

There are two areas that will be affected: Local Loop Unbundling (LLU), which allows comms providers to install equipment in Openreach telephone exchanges and Wholesale Line Rental (WLR), which enables providers to rent lines.

Ofcom has suggested that the wholesale price of unbundled lines should decrease by 1.2 per cent and 4.2 per cent each year (currently £89.10), whereas for shared unbundled lines, the cost should be reduced by 11.6 per cent to 14.6 per cent (currently £15.04). The price of WLR is recommended to come down by 3.1 per cent to 6.1 per cent (currently £103.68).

According to Ofcom the number of unbundled lines has increased from 123,000 in September 2005 to 7.59 million today, while there are 6.14 million WLR connections in the UK.

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