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Broadband Prices Still Too High
Posted by: eusty on Friday, August 27, 2004 - 08:21 PM
Regulatory

Britain's broadband access charges are still too high and need to be slashed still further to bring them in line with other nations.

BT's LLU rivals have long complained that BT's wholesale broadband rates are too high and are hampering broadband competition, and Ofcom, the industry regulator,  has partly agreed with them.

The watchdog said BT's phased 70pc price cut for its "shared local loop unbundling" product, whereby it sells capacity on its telecom equipment to rivals, almost matched its own new pricing recommendation of a 76pc cut.
It proposes a one-off connection charge of £37.03, compared with £83.33 now and £117 before the BT phased price cuts began. It also recommended that BT cut the annual rental rate by a further 6pc to £12.64.
Ofcom has suggested a 42 per cent cut  in BT's charge for "fully unbundled access," although BT has proposed cutting these rates by just 15 per cent.

Ofcom seem to have made the LLU question one of it's main concerns for the broadband market.

"We believe local loop unbundling offers the greatest potential for competition and price differentiation. That's why we've made it a priority,"

  Ofcom spokesman

BT's response was vauge.

"We aspire to get closer to Ofcom's pricing proposals,"

BT spokesman

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