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Telecoms regulator Ofcom has announced a review of BT Openreach's pricing policies in a move that may increase the cost of broadband.

Openreach was first created in January 2006 following Ofcom recommendations and is responsible for selling broadband connectivity to other internet service providers via its telecoms network.

The telecoms watchdog asserts that there have been many developments in the broadband industry since Openreach first began operating and a review of price structuring is now necessary to reflect these changes.

"BT has provided evidence that the current, regulated prices for wholesale access services ... are out of balance with the underlying costs," Ofcom has stated.

Following a preliminary investigation of these costs, a second consultation later in the year will set out in more detail how much the company is entitled to raise prices by.

According to the Times, analysts predict that this will have a knock-on effect for consumer broadband prices and will also force a degree of consolidation in the UK market.

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