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.18 Jul 2002
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.”