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Ofcom calls for BT Openreach to reduce broadband and telephone line prices

Charges for providers that use BT's network set to fall

Ofcom is calling for BT to reduce the price it charges telecoms providers that use it network to offer broadband and phones services.

At present BT's wholesale arm, BT Openreach, charges £91.50 per year for both a broadband and phone line, while a net connection only is priced at £14.70. However, under proposals submitted by Ofcom to the European Commission, these could fall to £87.41 and £11.92 respectively. If approved, the price reduction will come into force in April.

This is the third time Ofcom has forced BT to lower the price it charges. However, the telecoms firm is unhappy with the proposals.

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"Whilst the prices are within the range outlined by Ofcom in November, we disagree with some of the underlying assumptions that they have used to determine these charge controls," BT said in a statement.

"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."

TalkTalk, one of the firms that uses BT's network said it was "pleased" with the proposals.

"We are pleased that the charges are being reduced - this reflects that BT's charges have been excessive in the past," a spokeswoman said.


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