The UK telecoms regulator Oftel has ordered BT to cut the cost
of its wholesale unmetered internet access prices by 8.5%. The
requirement was set out in a final Determination published today by
Oftel. The findings were based on a review of the volume of
unmetered internet traffic over BT’s network since the company’s
wholesale internet access was launched two years ago.
Other telcos buy wholesale Internet capacity from BT and use it
to provide unmetered internet access directly to consumers using
dial-up connections. This allows them to compete directly with BT
in the retail market for internet access.
David Edmonds, Oftel’s Director General, said:
“Oftel must ensure that the charges BT makes
to other operators for internet capacity on its network are fair
and reflect BT’s costs… This reduction means that operators can now
buy capacity from BT cheaper than before. Operators have the
opportunity to pass these savings on to ISPs and through them to
consumers.”
