Ofcom Asks BT OpenReach to Lower telephone Line and Broadband Rates

The telecom regulator Ofcom have asked BT to lower the rates it has been charging telecom providers that it utilizes to deliver broadband and fixed line services.

For the time being BT ‘s wholesale division BT OpenReach charges 91.50 pounds annually for both the services put together, whereas a an Internet connection costs only 14.70 pounds. Nevertheless, as per propositions presented to the European Commission by Ofcom these rates could be brought down to 87.41 pounds and 11.92 pounds correspondingly. It these new rates were accepted, it would come into effect from the month of April.

This has been the third time that the regulatory authority has coerced BT to reduce their charges, but the telecommunication stalwarts were most dissatisfied with the propositions.

In a statement, BT said that though the prices quoted by Ofcom were not outside the limits of what had been planned in November, they opposed some of the fundamental suppositions that Ofcom had utilized to settle on these charge regulations.

The company stated that their interest right through this process was to ensure that they were in a position to obtain a decent return rate so that they would be able to get on with their prospective investments for the country’s communication facilities. They said that they were willing to take into consideration all alternatives that they could avail of, even if it meant going in for an appeal, if Ofcom asserts their last and final decisions.

One of the providers that utilize BT’s network facilities, TalkTalk, informed that they were happy with the proposals.

A woman representative of TalkTalk said that they were satisfied that the rates for BT’s network facilities would be reduced, which only goes to show that BT’s charges had been far too much earlier.