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Ofcom proposes cheaper UK broadband
01 April 2011
The UK regulator is proposing cuts in prices for Openreach’s local loop unbundling and wholesale line rental
local loop unbundling
UK telecoms regulator Ofcom has proposed price cuts for broadband providers. The regulator has suggested lower prices for BT’s Openreach division, which provides wholesale access for other communications providers.
The move will affect two aspects of the BT business, the local loop unbundling service, which allows communications providers to install their own equipment in Openreach’s exchanges, and the wholesale line rental service, which allows providers to rent lines from BT.
Under the proposals, the price for a line to a property for a provider using its own equipment will be lowered between 1.2% and 4.2% below inflation every year, while the price of a rented line will be lowered between 3.1% and 6.1% every year.
Ofcom will now introduce a consultation on the proposal. GTB