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Oftel Moves To Cut BT Internet Costs

Oftel Moves To Cut BT Internet Costs

Oftel has proposed a cut in BT’s wholesale unmetered internet access prices. The 7% cut is based on detailed information on BTÂ’s costs for providing wholesale unmetered Internet access to other operators under the FRIACO arrangements.

David Edmonds, Director General of Telecommunications, said: “Up until now, BTÂ’s FRIACO charges to other operators to provide wholesale unmetered Internet access have been based upon cost estimates. Now that FRIACO has been used for some time, Oftel has sufficient data to make an accurate calculation of BTÂ’s costs and the appropriate wholesale price.”

“Oftel believes that there is room for a seven per cent cut in BTÂ’s wholesale charge for unmetered Internet access, and operators should ultimately be able to pass some or all of this saving on to their customers. Cuts in BTÂ’s charges for FRIACO will mean UK consumers will continue to enjoy some of the cheapest prices in Europe for Internet access.”

The consultation period runs until 19 March. A final decision will be announced in the Spring.

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