It is hoped that the cost of making telephone calls and dial-up
internet connections will fall, as the price charged by BT to other
service providers for carrying calls between exchanges is
reduced.
The regulator estimates that the controls, together with
competition, could reduce telecommunications costs for UK
businesses and consumers by around £350 - £400 million over the
four year period.
Ofcom is also replacing BT's charge control for carrying traffic
between local and main exchanges (local-tandem conveyance) with a
‘safeguard cap’ that will limit charge increases for that service
to below inflation. This change recognises the continuing growth of
competition in this market, says Ofcom
In addition, the regulator found that certain areas of the
wholesale narrowband market, where BT no longer has significant
market power, could now be deregulated.
