Ofcom plans could mean cheaper broadband in rural areas

It has been announced recently that plans set out by communications regulator Ofcom could mean people in rural areas are able to get cheaper broadband.

For both residents and businesses in rural parts of the UK getting access to broadband has proven very difficult, and this has resulted in a distinct digital divide between many rural and urban areas. Many businesses and residents in hard to reach parts of the UK have been disadvantaged in a number of ways as a result of lack of broadband access and affordability.

However, it has now been reported that plans have been set out by the UK’s communications regulator, Ofcom, which could mean that those in rural parts of the country could get cheaper broadband. This is because the regulator has proposed that in areas where BT is the sole service provider of wholesale broadband services it charged reduced prices to other Internet service providers.

Essentially, Ofcom is asking communications giant BT to reduce its wholesale prices to other ISPs by up to 14.75 percent below RPI inflation. If the plans are successful then around three million homes and businesses in rural areas could benefit. This is because the areas where BT is the sole provider of wholesale services are mainly rural areas.

Whilst some people have welcomed the move there is still concern over accessibility to broadband in rural areas. In the meantime a BT spokesperson said: “It is key that the details strike the right balance between control and incentives to invest in rural areas. As the UK’s main investor in rural broadband, we will engage fully in the consultation process which follows to make our case.”

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Source – BBC