Oftel Orders BT To Cut Price Of Wholesale Internet Access

Oftel has ordered BT to cut the wholesale price of the unmetered internet access package that it sells to telecoms operators.

Following a review of the volume of unmetered traffic over BT’s network since the launch its wholesale internet access service two years ago, the communications regulator has concluded that BT must reduce its prices by 8.5%.

BT sells its wholesale internet capacity to other telecoms operators, who then use it to provide unmetered internet access directly to consumers. The price cut means that operators can now buy capacity at a cheaper rate, allowing them the compete more effectively with BT.

Oftel’s director general of telecommunications, Dave Edmonds, said: “Oftel must ensure that the charges BT make to other operators for internet capacity on its network are fair and reflect BT’s costs. This reduction means that operators have the opportunity to pass these savings on to ISPs and through them to consumers.”

He added: “Unmetered internet access is often a stepping stone to broadband. New broadband connections are running at around 20,000 per week (see

BT has recently unveiled a number of initiatives to increase the uptake of broadband internet services in the UK. Following the launch of its a “no frills” high-speed internet product earlier in the year (see BT’s ‘No Frills’ Service Ups Broadband Stakes), the telecommunications company announced plans for a scheme to allow consumers to influence where its ADSL service will be introduced next (see BT Brings Consumers Into The Broadband Equation).

Oftel: 020 7634 8761 www.oftel.co.uk

Recent New Media Stories from NewsLine IAB Opens Resources To Non-Members UKbetting Acquires Sports.com’s Betting Arm Virgin Is World’s Number One Web Radio Station

Subscribers can access ten years of NewsLine articles by clicking the Search button to the left