In a recent report the UK’s communications regulator Ofcom revealed that it was giving communications giant BT permission to increase its charges for companies that use the telecoms giant’s broadband network. This comes after the Open Reach division of BT was told by Ofcom that it should be allowed to make a ‘fair return’ on its future communications activities, including the set up of the national fibre optic network to allow superfast broadband access.
According to the report unbundled line costs are set to rise from £81.69 to £86.40, which is causing concern for many broadband providers that use the network and will see their charges soar. Of course, the other worrying thing is that in order to cope with these rising costs providers will have to pass on the steep rises to consumers, which means that customers could soon start seeing their broadband bills rise if they are with a provider that uses the BT network.
Industry officials are predicting that users are unlikely to be affected right away, but that in the medium to long term many will see the cost of their broadband service increase, which will further impact upon the finances of the many households that are already struggling to make ends meet in the current difficult financial climate.
Virgin Media is the other communications giant that operates its own broadband network, and it is claimed that the company is in talks with other providers about leasing capacity on its network. The future price increases could see many consumers decide to switch to Virgin if it works out significantly cheaper.