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Ofcom proposes new BT Openreach price controls

Posted by malcolm on Tuesday, February 7th, 2012 at 14:49

Ofcom is proposing new price controls on BT Openreach’s Local Loop Unbundling (LLU) and Wholesale Line Rental (WLR) services.

Under the proposed changes, combined use of a broadband and phone line would fall from £91.50 per year to £87.41 (MPF rental), while use of a broadband line would fall from £14.70 per year to £11.92 (SMPF rental).

Under the revised European Electronic Communications Framework, Ofcom must submit such changes for review by the EU Commission and the Body of European Regulators for Electronic Communications (BEREC), who will have a month to comment.

Ofcom said that the new charge controls reflected excessive charges in the past. However, BT have expressed concern about the effect on future investment.

We disagree with some of the underlying assumptions that they have used to determine these charge controls.

Our primary concern throughout this process is to ensure that we are able to achieve a fair rate of return in order to continue our investment in the future of the UK’s communications infrastructure.

We will consider all options available to us, including appealing, after Ofcom confirms its final decisions.
— BT, talking to the BBC

For more information, see Ofcom’s statement.

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