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June 2, 2008

BT to increase cost of broadband


by David Allen

BT Openreach are planning to increase the cost of providing their services to other suppliers.

If these price changes go ahead it will mean that all broadband and fixed line phone services will have to increase in order for the suppliers to cover these costs.

However the ball is in the court of Ofcom at the moment. They will review the situation and if they agree, and there is no real reason why they will not, then the prices will rise next year.

The increase in fees will mean that there is more money to go into upgrading the system.

The current deal between BT Openreach and the suppliers, who have put their own equipment into the BT exchanges, means that BT gets around £82 per year for each broadband subscriber the supplier has.

But BT says that this is not enough to cover the estimated £1 billion that they are putting into the system.

Story link: BT to increase cost of broadband


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