1 December 2008
In a bid to prevent bottlenecks, BT Openreach has signalled its intention to reduce backhaul service prices, allowing internet service providers (ISPs) to access its broadband networks at a lower cost.
The move comes in response to concerns over the growth of bandwidth-hungry applications such as live streaming television services - including those being offered by the BBC.
Spokesman Steve Robertson told the Observer: "There has been a lot of noise from our customers that end-users are consuming a lot more bandwidth. For us there is a real potential bottleneck that has to be addressed now."
BT Openreach owns and manages the local access network that connects broadband users to telephone exchanges. It provides backhaul services for ISPs, who then connect customers to their own networks.
The company said it will be dropping prices across a number of its broadband access products by almost two-thirds.
According to new figures from the Office for National Statistics, approximately 95% of all internet users in the UK are now on broadband.
Consumers could find a cheaper deal by comparing broadband deals online or shopping around for bundled deals which also include home phone services and digital TV.
© 2008 Adfero Ltd
Content for the uSwitch.com market news service is provided by a third party, Adfero Ltd. Whilst uSwitch.com makes reasonable efforts to check the reliability of this content, uSwitch.com does not guarantee the accuracy thereof or endorse the views or opinions given by Adfero Ltd, unless expressly stated otherwise.