BT, the largest wholesale broadband provider in the

UK

, is all set to reduce the price of its wholesale broadband products from 1 May, 2007. Accordingly, the monthly rental charge of BT IPstream, its most favourite product, will be reduced by 9 percent and this will invariably benefit the service providers who come under the network of BT Wholesale. This means the monthly charges will slash to £7.63 from £8.40.BT also says 455 more exchanges will be added to the class of high density exchanges and this will imply that the internet service providers (ISP) at these exchanges will benefit from the BT's usual discount scheme. There is also a hike in the discount - from £1.10 to £1.24 and this new scheme will be implemented from May, 2007.The reduction in the monthly charge and the increase in discount will make the net rental price cheaper by 12 percent. Hence, the new net rental price will be £6.39 sliding from £7.30.BT's another product Datastream will also come under the new discount scheme and the monthly rentals will be reduced to £5.90 from the existing £ 7.05.The installation charges for both IPstream and Datastream will also be reduced to £34.86 from £40 from 1 May.The new pricing structure will also feature the introduction of cessation charges which will be £33.75. However, the customers who migrate to other providers belonging to the same MAC process need not pay these charges. The same rule applies to the situations when a large number of customers switch over to LLU lines.The reduced monthly rentals and the new discount scheme will counterbalance the cost hike caused by the implementation of cessation charges, thereby BT Broadband hopes to offer overall cost-effective products to the broadband providers that come under its umbrella.BT says its proposed price reductions are aimed at enhancing the competitiveness among the Cheap broadband providers in the

UK and delivering the quality based services to the its customers.BT has also revealed its intention to launch ADSL+ 2 products (speed up to 24 Mbit/s) in the coming months.

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