Thanks SimonHi for this one, this is for all the brits on broadband. :) BT intends halving the cost of broadband in an announcement due to be made later this week.
That's according to a newspaper report in the Sunday Telegraph. It claims new CEO, Ben Verwaayen, will indicate that the monthly cost of broadband access will halved to around £15 and £20 for business users and consumers respectively, though more precise terms and conditions are likely to be forthcoming over the medium rather than short term.
The move, if confirmed, will represent a victory for telco regulator, Oftel, which recently heaped pressure on BT to open up the so-called local loop - representing the lines between exchanges and users - to other competitors.
And for good reason, given the mass take-up of high-speed broadband access in the UK has been hampered to date by a costings structure most punters have refused to accept.
Indeed, with around 150,000 subscribers the UK has been a laggard - in relative terms - when it comes to market penetration.
What is likely to happen first is a reduction in wholesale charges to around £15 a line - this in turn followed by sharp price reductions to consumers later.
Opening up the broadband market could prove a win, win, win situation for BT, its competitors and last, but not least, consumers.
BT certainly needs to do something as it won't be able to rely on revenues generated by its recently spun-off mobile telco operation MMO2 - hence, the expected initiative it hopes will attract additional revenues from a mass of new customers taking up broadband services for the first time.
News source: Moneyextra.com
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