We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,259 News Articles

Oftel forces BT to cool home price rises

BT must reduce its price hike

After months of talks and negotiations, telecoms watchdog, Oftel, has imposed tough price controls on telecommunications operator, BT.

Oftel had previously promised that all price controls would be phased out as competition increased. However due to a very slow start to the unbundling process, Oftel has extended its hand over BT’s retail prices for another year.

“The controls are designed to save consumers money,” said an Oftel spokesperson.
It is expected that the package will save consumers an estimated £270m throughout the year.

The controls have pushed the value of BT shares down from 690p to 26p, resolving fears that shares could cost BT an estimated £90m, this year alone. Retail prices will be cut by 4.5 percent less than the rate of inflation.

David Edmonds, Oftel director general, said in a press statement that controls were still needed to protect consumers.

Once the unbundling process has begun, perhaps next year Oftel will waive its right to enforce price controls over the telecoms giant. BT’s conduct over the next year will be vitally important.


IDG UK Sites

Sony Xperia Z3 Compact review: A better deal than the Z3 and most smartphones

IDG UK Sites

Why people aren't upgrading to iOS 8: new features are for power users, not the average Joe

IDG UK Sites

Framestore recreates ancient China for Mr Bean's martial arts misadventure

IDG UK Sites

iPad Air 2 review: Insanely fast and alarmingly thin. Speed tests, camera tests and more