Two of the UK’s largest internet service providers are not committing to passing on Ofcom’s proposed BT price cuts to consumers.
Earlier this week, the UK telecoms regulator proposed a reduction of up to 19 per cent in the amount that BT can charge rivals to rent lines through its wholesale network Openreach from April – leading to speculation of a drop in the prices consumers pay for broadband and landline telephone services.
But according to various online reports, both Sky and Talk Talk have said they will not commit to cutting consumer prices, should the recent Ofcom proposals come into effect this Spring.
Talk Talk said it would welcome the possibility of a drop in wholesale broadband prices, but like Sky would not promise to pass on any savings to its customers.
A spokesperson for the firm said: “The proposed LLU [Local Loop Unbundling] charges are within expectations. We are pleased that the charges are being reduced – this reflects that BT’s charges have been excessive in the past.”
Unsurprisingly, BT said it was not happy at the prospect of seeing its wholesale prices, which are set by Ofcom, reduced once again, and confirmed that it is considering appealing against the regulator’s decision as it disagrees “with some of the underlying assumptions that they have used to determine these charge controls”.
It added that it needed to “achieve a fair rate of return” in order to continue investing “in the future of the UK’s communications infrastructure”.
The Ofcom proposals have been submitted for approval by the European Commission. A final decision is expected to be made early next month.
