BT broadband prices cut: regulator promises further action

The UK’s telecoms regulator Oftel said yesterday it would continue to study the issue of wholesale broadband pricing and refused to rule out the possibility of forcing dominant service provider BT Group [BT.L] to make further cuts in its service charges. The announcement came after it was revealed that BT will soon reduce the price of connection to its Datastream product which it sells to the UK’s alternative telecoms operators by GBP0.5 to GBP8.05. The price cut was implemented by Oftel after it had received a series of complaints from operators who claimed they were unable to supply wholesale services to internet service providers due to the high costs of Datastream. Whilst welcoming the price cut as an encouraging step towards fostering real competition in the market, most of the UK’s alternative suppliers are unanimous that further cuts need to be introduced before consumers will benefit from the benefits of a truly competitive marketplace.