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Ofcom has moved to reduce the wholesale rates BT Openreach can charge rival broadband providers to use its network.

The media watchdog - which regulates wholesale prices due to BT's significant market power - said it would look to cut costs by up to ten per cent.

Fully unbundled lines, shared unbundled lines and wholesale line rentals will all be included in the cost review.

Ofcom said it will aim to strike a balance between providing incentives to invest in networks and ensuring broadband prices are affordable for the consumer.

With BT Openreach required to charge other internet service providers less to use its network infrastructure, broadband deal prices and landline fees may well be reduced in the future.

Broadband providers including TalkTalk and Sky, as BT wholesale customers, could be among those to benefit from the change.

Ofcom is aiming to publish a full statement on wholesale broadband costs in autumn 2011.

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