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A Welsh broadband provider has criticised Ofcom's decision to force BT to reduce its rural wholesale prices.

Wispa Ltd believes the media regulator's decision – geared at encouraging other broadband providers to invest in the countryside – will simply lead to BT reducing its infrastructure investment.

Richard Brown, Chief Operating Officer at the company, commented: "Ofcom are either clueless, witless or toothless – it's difficult to make my mind up which it is."

"A reduction in the wholesale pricing gives BT less reason to invest in rural communities due to diminishing return on investment."

Mr Brown claimed that a reduction in wholesale costs of ten per cent "isn't a reduction in costs to resellers and agents".

This is because wholesale bandwidth makes up a very small proportion of the cost to deliver rural broadband, he added.

Announcing its decision to reduce the wholesale prices BT can charge in rural areas, Ofcom said the move could lead to three million homes and businesses receiving cheaper broadband services.

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