BT broadband fees set to be capped

CONSUMERS could see lower bills for telephone and broadband after Ofcom announced it is to impose charge limits on BT’s Openreach arm due to its “significant market power” in the area.

The regulator proposed cuts of up to 19 per cent in the amount that BT’s wholesale network Openreach – which owns the majority of landlines in the country – will be able to charge from April, with further decreases the following year.

The proposals are expected to benefit BT’s rivals, including TalkTalk and Sky, who may choose to pass on the lower costs to consumers.

However, BT said it is considering appealing against Ofcom’s decision because it disagrees with the way it had done its calculations. BT said it needed to get a “fair” rate of return if it is to continue investing in the UK’s broadband infrastructure.