Ofcom sets new BT wholesale rental prices

Friday 22nd May 2009, by Daniel King

Communications services providers have been advised of a new pricing structure for access to BT's wholesale broadband and telephone systems.

Ofcom has this week confirmed Openreach, the group created in 2006 to act as a separate telecoms business for such offerings, will implement a revised list of charges for the use of its lines.

In addition, it was noted the firm had now successfully delivered local loop unbundling - which allows providers to take over the line for the supply of broadband and telephone services - to almost six million lines in the UK, a figure up from 123,000 three years ago.

The telecommunications watchdog announced that from May 22nd this year until April 2010, the annual rental charges for a fully unbundled line will be £86.40 - up from the previous price of £81.69.

Shared access will be priced at £15.60 and Ofcom state that this means the figure remains unchanged.

Commenting on the changes, company chief executive Ed Richards said: "The new prices will enable Openreach to earn a fair return whilst allowing continued strong consumer take-up of broadband at competitive prices."

It was also decided that maximum charges for Openreach wholesale services would be changed "in light of changing economic and commercial conditions", although Ofcom said this would not be done until further reviews and consultations had been undertaken.

The group also announced this week there would be no salary increases for its staff during the 2009-10 period and executive committee members would not be considered for a bonus.

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