BT ordered to cut the cost of surfing, and honor DSL price cut

Two stories relating to our old friend "Busby"...

UK Telecom Watchdog OFTEL has ordered BT to slash its charges to rival telecoms companies for connecting users to the Internet. BT must use its slapped wrist to cut charges by a full seven per cent.

It means that ISPs in competition with BT's own BT Internet service will save money and either increase their profits or pass savings on to increasingly impatient consumers.

Oftel claims the move will cut the cost to regular surfers. "Operators should ultimately be able to pass some or all of this saving on to their customers," says David Edmonds, the watchdog's director general of communications. He said, [the] "Cuts in BT's charges will mean UK consumers will continue to enjoy some of the cheapest prices in Europe for Internet access."

News source: The Inquirer

Meanwhile, on the DSL front, PlusNet has called on BT to cut the cost of its wholesale DSL service by £10 a month when the telco's CEO honours his pledge to make a "substantial cut in the cost of wholesale broadband services".

PlusNet, maintains that unless the wholesale price comes down to between £15-£18 a month service providers will be unable to meet a retail price of around £25 a month, passing on any cost saving to customers when the cut is finally announced by BT.

"We want to see BT stimulate the market by cutting the monthly rental by at least £8 to £10, and lowering the activation fee to below the £25 mark," said Alistair Wyse, Technical Director for PlusNet.

News source: The Register

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