UK broadband prices to fall if Ofcom gets its way

UK Broadband prices to fall if Ofcom gets its way
The price isn't right for BT

The price of broadband deals and phone rentals could drop in the UK and it's all down to Ofcom's insistence that BT lowers how much it charges internet providers for the use of its lines.

In a new report by communications regulator Ofcom, it is suggested that BT should drop the current cost of using its broadband and phone lines from £91.50 a year to £87.41.

And if a company is only looking to snap up its broadband lines, then this should be reduced from £14.70 a year to the more palatable £11.92.

Fair rate of return

BT has released a statement about Ofcom's proposals and is unsurprisingly not very happy about the idea of reducing its prices.

"We disagree with some of the underlying assumptions that they have used to determine these charge controls," it said.

"Our primary concern throughout this process is to ensure that we are able to achieve a fair rate of return in order to continue our investment in the future of the UK's communications infrastructure.

"We will consider all options available to us, including appealing, after Ofcom confirms its final decisions."

Although these changes are subject to approval – they have to go to the European Commission – it looks likely that the new prices will come into effect from April 2012.

Marc Chacksfield

Marc Chacksfield is the Editor In Chief, at DC Thomson. He started out life as a movie writer for numerous (now defunct) magazines and soon found himself online - editing a gaggle of gadget sites, including TechRadar, Digital Camera World and Tom's Guide UK. At Shortlist you'll find him mostly writing about movies and tech, so no change there then.