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Ofcom proposes lower prices for high-speed business lines

Date June 23rd 2015 by in Categories Ensuring Compliance, Telecommunications

On Friday 12th June, Ofcom released a proposal regarding controls on the wholesale prices that BT charge for products using leased telecoms lines. These lines provide vital high-speed links for businesses and providers of superfast broadband and mobile services.

Ofcom have carried out analysis of the competition in the provision of leased lines services and have found that BT has 'significant market power' in a number of wholesale leased line markets, and proposes that charge controls should be imposed to protect buyers of these products. It’s likely that this will be good news for you and your business!

Proposed controls should lead to significant real-term price reductions for most customers of the £2bn leased lines market, namely businesses, schools, universities and libraries.

Ofcom plan to introduce regulations to address the risk of excessive pricing. It’s thought that proposals will include charge controls for leased lines services and guidance for the pricing of dark fibre, i.e. the potential network capacity of fibre-optic installations not owned or controlled by traditional carriers. More information on all of the proposed charge controls can be found here.

Ofcom are currently taking responses on this consultation and expects to publish its final decisions in the first quarter of 2016, taking effect from 1st April 2016.


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