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Regulator proposes price cut for Openreach products

Ofcom tells EC ‘BT must cut broadband prices’

The European Commission has received a proposal from Ofcom to require BT’s Openreach wholesale broadband operation to cut the prices on three of its main products.

The provisional price cuts include dropping the price of BT’s unbundled line and shared unbundled line packages, as well as it’s wholesale telephone line rental.

The EC has 30 days to comment on Ofcom’s proposals, if it approves these new prices they will come into effect from April 1st 2012. If BT does have to lower it’s Openreach prices, it is currently not clear whether the price cuts will be passed on to the consumer.

Ofcom claims it has the right to order these price cuts due to BT’s considerable marketing power. BT’s copper network is by far the biggest in the UK, meaning just about every major ADSL provider has to deal with Openreach.

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