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Ofcom proposes broadband/phone price cuts

BT Openreach wholesale prices could be capped

UK consumers could see significant reductions in broadband and home phone prices, after telecoms regulator Ofcom today proposed caps on the wholesale prices charged by BT Openreach.

In a consultation, Ofcom put forward controls that will affect the price BT's access division can charge when leasing lines to third-party providers such as Sky, and hopes this reduction will be passed on to customers.

Prices could drop by as much as 14 percent, in certain cases.

Ofcom proposes charge controls that would see prices for local loop unbundling (LLU) services drop by between 1.2 and 4.2 percent per year, or between 11.6 and 14.6 percent when the unbundled line is shared.

For wholesale line rental (WLR) services, Ofcom proposes cuts of between 3.1 and 6.1 percent.

"The proposed prices strike a balance between providing incentives to invest in networks and ensuring that broadband and landline prices are good value for consumers," said Ofcom in a statement.

"Ofcom expects these proposals to lead to real term price reductions for consumers, as communications providers pass on savings to their landline voice and broadband customers."

Read Ofcom's statement in full here; or read the full details of Ofcom's proposed charging models here.

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