BT broadband cuts wholesale costs

11 April 2007
BT has decided to cut the cost of wholesale high-speed net access from £8.40 per line per month to £7.63 in a move which could herald the arrival of cheaper broadband packages for customers with a number of internet service providers (ISPs).

Wholesale prices affect the amount other ISPs pay to BT for the privilege of using their networks, which were opened to alternative providers in 2005 under pressure from industry regulators.

BT has announced it will cut the charges to ISPs by nine per cent from May 1st, allowing ISPs, if they so choose, to charge their own customers less in turn.

BT said its reduced pricing will help ensure "the further growth of a competitive market for broadband services".

"The new pricing will deliver significant cost savings to our service provider customers," said Cameron Rejali, managing director for products and strategy at BT Wholesale.

But pressure from customers and consumer groups may yet be needed to ensure that the cheaper wholesale ISPs receive is passed onto customers.

According to Ofcom's latest Digital Progress Report, more than half of all UK adults now have a broadband connection.

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