ADSL Broadband
Best Broadband
Cable Broadband
Free Broadband
Fastest Broadband
20Mb Broadband
50Mb Broadband
Fibre-Optic Broadband
Ofcom clash with BT
Monday 8th December 2008, by Daniel King
Ofcom has ruled that BT cannot raise the prices it charges other operators to use its network as high as the telecoms firm were hoping.
BT responded to the decision claiming that it is important for the company to "achieve a fair rate of return", given that it spends more on the UK's communications infrastructure than any other firm.
Three years ago, BT's Openreach system was set up after Ofcom threatened the telecoms company with a full break-up.
The move was designed to create competition between firms by allowing anyone to take control of BT phone lines through local loop unbundling.
Ofcom's decision on Friday said the annual rental of a fully unbundled line should increase from £81.69 to between £85 and £91.
Wholesale line rental - which allows rival companies to act as though they own a line without needing as much equipment - was increased to between £100.68 and £104.40.
BT expressed concerns over Ofcom's attitude to increasing prices and the amount of time it is taking the regulatory body to make decisions.
One insider at BT said: "Out in the real world it's pretty nasty at the moment and Ofcom seem to be operating in a bit of a bubble."
This comes soon after the company's chief executive Ian Livingston warned that the firm may have to halt plans to rollout a new super-fast broadband network.
BT was intending to spend around £1.5 billion to connect UK homes to a high-speed fibre-optic network.
Ofcom responded to these concerns over funding for the network saying: " If BT now decides to reconsider its four-year plan for investment in fibre for super-fast broadband, that is a separate and entirely commercial matter for the company and nothing to do with today's announcement."
Virgin Media are currently in the process of rolling out a 50Mbps broadband connection.
Categories: Broadband, Broadband Products, BT, Virgin Media
