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BT cuts broadband prices

UK telco BT confirmed plans to reduce wholesale broadband prices on Monday.

The cuts will come into force on May 1, starting with BT Wholesale’s most highly used product – BT IPstream – which will benefit from a 9 per cent reduction in the monthly rental charge, from £8.40 per line per month to £7.63.

BT will also reduce wholesale connection charges to “help ensure the further growth” in a market where more than half of all UK homes subscribe to broadband. Speeds of up to 24Mbps will also be available from early next year, BT said.

However, the operator will also be introducing a cessation charge of £33.75 from May 1, which will not apply when a consumer wants to switch to another service provider where both service providers participate in the MAC process, or where there are bulk migrations to LLU.

“BT believes that this will further encourage participation in the MAC process, which will be beneficial to both the industry and consumers,” the company said.

As of February 14, broadband providers became required to supply consumers with a MAC upon request and free of charge.

Ofcom said that some retail broadband providers had been unable to supply their customers with MAC codes when they request them, usually because the wholesale provider that supplies the broadband service refuses to hand over the code until a contractual dispute with the retail provider has been resolved.

The new rules will mean that all wholesale providers must provide MAC codes to their customers – the retail broadband providers – upon request, regardless of any dispute.

The more robust MAC process also promises to reduce the number of complaints Ofcom receives from consumers struggling to get broadband set up when moving house.

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