Telecom regulator Ofcom has given BT a free hand with regards to placing for competitors with suggestions that the wholesale price of broadband connections could increase by £30 a year. This would place more pressure on the sector and could spell the end of super cheap broadband offers.
Many experts are surprised that British Telecom has been given a free hand with regards to future pricing but when you consider the company is investing billions of pounds in the venture there needs to be a decent return on capital for BT as a company and shareholders. While the rumoured £30 per connection increase will take some time to creep in, we could see a general increase in front end prices charged to consumers in the short, medium and longer term.
The broadband market in UK is one of the most competitive in the world and after initially falling behind many leading countries the UK has, and continues to, keep pace with many overseas competitors.