Broadband bills to fall as watchdog slaps price curbs on BT’s Openreach
The regulator said it plans to cut the wholesale prices that Openreach can charge rivals like Sky and TalkTalk for the standard 40MB broadband connections taken by most households from the current £88.80 to £52.77 by 2020-21.
“We would expect these savings to be passed on to residential customers through cheaper prices,” Ofcom said. The proposed price cap comes into force in 2018.
Openreach, of which BT has controversially been allowed to retain ownership despite complaints from rivals, will also be subject to much more stringent rules on repairing faults and installing new lines.
But the regulator has shied away from wholesale price caps for higher broadband speeds, a move it suggests will encourage BT’s competitors to invest in their own ultra-fast network.
TalkTalk chief executive Dido Harding said: “We welcome moves to cut prices and improve Openreach’s service, but consumers will be frustrated that they have to wait a year before they benefit.”
