BT Could Cut Broadband Prices To Boost Uptake
BT is understood to be considering cutting the price of its broadband internet product, as part of wider initiative to promote the uptake of high-speed internet services in the UK.
The company’s chief executive, Ben Verwaayen has reportedly indicated that he is preparing a significant broadband-related announcement, which could include a cut in the £14.75 monthly wholesale fee that BT charges internet service providers for the use of a line.
The typical retail price for a broadband connection over the BT network is around £28 per month and a cut would help to bring the average closer to the £25 per month charged by cable operators, Telewest and NTL.
Verwaayen is quoted in the Times as saying: “We are looking at everything including pricing, to see how we can speed up the adoption of broadband. Expect a coming together of news sooner rather than later.”
The telecoms giant is also in the process of examining new technologies and new business partnerships that could boost the uptake of broadband services in rural areas (see BT To Extend Broadband Offering).
Paul Reynolds, chief executive of BT wholesale, commented: “We are making tremendous progress in broadband on all fronts. We now have more than 750,000 end users, an important milestone on the way to our target of one million ADSL connections by summer this year.”
He added: “We are announcing new products in direct response to our service provider customers’ demands. We are also confirming plans to bring even more people connected to upgraded exchanges within reach of this fast, always on service from the summer.”
BT and BSkyB are currently under investigation for alleged anti-competitive behaviour over a joint satellite TV and internet marketing push (see BSkyB And BT Probed Over Joint Marketing Campaign). Telecommunications regulator, Oftel, launched the investigation into a promotion offering discounts to Sky customers subscribing to the BT Broadband service (see BT Teams Up With Sky For Cut Price Broadband Promo), following an official complaint from NTL.
Two recent research studies from the Office Of National Statistics and Datamonitor show that consumer uptake of broadband internet services exploded during 2002, clearing the way for a four-fold increase in connections throughout Europe by 2006 (see Last Year’s Broadband Boom Kick-Starts Uptake).
BT: 0207 469 2337 www.bt.com
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