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BT could be allowed to set higher levies for broadband providers using its network, according to reports today.

The telecoms and internet service provider (ISP) has garnered a preliminary review from the industry regulator Ofcom, PC Pro reports.

Such an assessment could be the first step towards fulfilling BT's request for increased flexibility in its pricing structure for network use and could spark fierce debate in the sector.

Industry players potentially affected by the review include the likes of Carphone Warehouse and Tiscali.

The Times suggests that the development of the UK internet network could be compromised should higher charges for local loop unbundling be instigated.

However, a statement from Ofcom indicated that it acknowledged BT's concerns about the profitability of Openreach - the company division tasked with ensuring access to the local loop for competitors.

A spokesperson for the firm stated: "We need to find a way of ensuring that we make a certain level of return, whether that's through pricing or finding new efficiencies.

"No specific proposals have been discussed - this is part of our ongoing consultation with Ofcom."

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