Move to cut rural broadband prices welcomed

Rural campaigners have welcomed the news that the communications regulator, Ofcom, has taken measures to reduce the cost of broadband for people in rural parts of the UK.

There has been some very pleasing news for rural campaigners after the communications regulator Ofcom announced that it was taking measures that would mean the cost of broadband access in rural parts of the UK would come down. This will be achieved through reducing the wholesale price that communications giant BT can charge other Internet providers according to reports.

In many smaller exchanges such as those in rural areas, BT is the only operator, and providers in those areas have to consider the cost of renting BT’s equipment when pricing broadband plans and packages. For many people in rural areas this means that they end up having to pay more than those in urban areas that are far better served.

From the middle of next month until March 2014 BT will have to cut its rates by twelve percent below inflation each year. This will make it cheaper for providers in rural areas and savings can be passed on to consumers through cheaper plans and packages.

The Country Alliance was delighted by the plans, and a spokesperson for the group said: “People living in the countryside have been left behind in the digital divide for far too long and it is vital that they have effective and affordable broadband if their rural economies are to grow and prosper.”

However, one industry official said: “Any retail price reductions that follows from this wholesale announcement will be welcomed by consumers, but the extent to which providers will reduce prices is uncertain. The wholesale cost reductions may be used by broadband providers to ease congestion at peak times by adding capacity instead.”

Source – BBC