BT ordered to cut ISP charges

12 April 2012

CONSUMERS could benefit from cheaper internet bills after industry regulator Oftel ordered BT to cut its prices.

The reductions would apply to the four million UK households who pay a flat monthly rate to surf the net - known as unmetered.

Oftel carried out a review of the prices BT charges Internet Service Providers such as Freeserve and AOL for using its network for unmetered access. The regulator said BT must drop its prices by 8.5%. The pressure is now on ISPs to pass on the savings to their customers.

BT began offering ISPs the opportunity to buy access to its network to sell on to customers two years ago. Oftel gave BT guidance on the prices they should set and the 8.5% reduction follows a complex review of how the market has performed. An Oftel spokesman stressed the cut was not because BT had been overcharging.

More than 11m UK households are connected to the internet through what is known as narrowband - as opposed to the broadband, which offers faster access. Of those, four million pay a flat monthly rate regardless of how much time they use the internet. The remainder pay for the time they are online.

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