UK customers could see lower broadband bills under Ofcom proposals

Millions of UK broadband customers could see lower bills with proposals from Ofcom that would force BT to cut almost £100 million in charges to rivals to provide services to their customers on its network.

Under Ofcom's proposals, BT-owned Openreach, which controlled the UK's broadband network, would see dramatic reduction in what it charged rivals such as Sky and TalkTalk to offer superfast 40Mb broadband packages to customers via its network.

Openreach currently charged rivals £88.80 a year in wholesale charges for each individual superfast package, one of the most popular with UK broadband users. Ofcom had launched a consultation which would see this cut by 40 per cent to £52.77 a year by 2020-21.

There were an estimated 2.4 million to 3 million non-BT customers taking the 40Mb package via Openreach, meaning the company's fees would reduce to close to £100 million on the basis of estimated customer levels.

''We would expect these savings to be passed on to residential customers through cheaper prices,'' said Ofcom, The Guardian reported. ''This promotes competition in the superfast broadband service most used today by consumers.''

Matt Hancock, minister of state for digital and culture, said, ''We want everyone in the UK to have access to fast, reliable, and affordable broadband, and Ofcom's proposals are good news for consumers, businesses, and the country, The Guardian reported.

Jonathan Oxley, Ofcom's competition group director, said, ''Our plans are designed to encourage long-term investment in future ultrafast, full-fibre networks, while promoting competition and protecting consumers from high prices, Eastern Daily Press reported.