Ofcom gives BT some leeway

22nd May 2009 07:45

Telecoms regulator Ofcom will allow BT to raise the price it charges its rival for broadband line rentals by just under 6%, but is still mulling over charges for old-style telephone services.Under the new tariffs, BT can charge £86.40, up from £81.69, for a fully unbundled line, where a rival takes over the line to provide broadband and telephone services. Charges for a shared unbundled line, where the line is shared with BT for broadband remains unchanged at £15.60, while other charges go up in line with underlying cost increases.Ofcom said it had changed the tariff as the original charges did not include an annual adjustment for inflation or changes to other costs. In light of changing economic and commercial conditions, it should now amend these charges to reflect cost changes arising from this, it said. The regulator added it has decided not to set new prices for wholesale line rental (WLR) until it has concluded its current wholesale narrowband market review and will publish a further consultation on these prices shortly.