Ofcom price plans may cut cost of rural broadband

[dutchman]

Cheaper broadband could be on the cards if you live in the countryside, if proposals today by internet watchdog Ofcom go ahead.



The price - or retail rate - that a broadband provider charges its customers is influenced by how much it has to pay to use the broadband network, which is often owned by a separate company. This is known as the wholesale rate.

In parts of the UK - particularly rural areas - BT Wholesale is the sole provider of wholesale broadband services. Ofcom says this applies to nearly 12% of the UK by population - around 3 million homes and businesses (see map).

Where this is the case, Ofcom has proposed cutting the price that BT Wholesale is allowed to charge broadband providers that piggyback on its network. The proposed price reductions are between 10.75% and 14.75% below inflation.