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BT wholesale price fears

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Posted 9th March 2009 at 3:00pm by Alex Buttle

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Ofcom should not allow BT to significantly raise its wholesale prices on ADSL broadband, according to one expert.

BT has asked the communications watchdog to permit it to up the charges on its wholesale product by 11 per cent before the end of April and 22 per cent by 2012.

Dr Chris Doyle of Warwick Business School, recently appointed by broadband provider TalkTalk to produce a report on BT's wholesale prices, has said that any increases would contradict the government's ambitions to bring broadband access to the whole country.

He said: "The government recently set out ambitious plans to include all households in the digital revolution so it is puzzling that the regulator is proposing to allow BT to increase wholesale prices and so raise the barrier for lower income households."

TalkTalk chief executive Charles Dunstone implored Ofcom to take into account the findings of Dr Doyle's report.

More news on: BT, Broadband coverage, ADSL broadband, Future developments

2 comments

  • Rammy, 9th March 2009.

    Ofcom should immediately reject any proposal by BT to increase the wholesale prices of broadband.
    At a time when the country is in the middle of a severe economic crisis it is unpatriotic, not that big business cares about patriotism, to undermine a service that people are desperately relying on for either;
    the betterment and continuation of their businesses or,
    to help them search and find alternative employment.
    This is a gross insensitivity and for his greed, the CEO of BT should be made into a pariah alongside Fred Goodwin if they attempt to implement any price increases.

    Reply
  • William P Ahern, 20th April 2009.

    I live in a Rural community in Northamptonshire. The quality, service and performance of broadband is poor. Pushing up the prices of ADSL would be pointless unless there was a marked improvement in service from the network provider. For instance my broadband speed (what I'am paying for ) should be 8Mbit/s on the downlink I only get 1.4Mbit/s on a good day. I also suffer from broadband line failures which take several weeks before anything is done to fix the problem.

    The vision of having a good broadband service to every home is flawed. From my point of view an absolute minimum broadband service of 8Mbits/s would be optimal. There is of course the question of multimedia, TV, films, music, video conferencing et'cetra which are being promoted for use over the internet, this all requires bandwidth and to be frank if every home on a single street was to download a film at the same time there would be a very noticable reduction in service.

    Unless the network providers start a programme to role out fibre to our cities and rural communities the vision of a reliable and useful internet service to every home is just a pipe dream.

    Reply

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