BT has ended weeks of speculation by announcing cost reductions
across its wholesale broadband product range in a bid to kickstart
demand for high-speed Internet services.
Users welcomed the move as evidence that BT has finally seen the
benefit of giving business the broadband service it needs.
BT chief executive Ben Verwaayen said the company plans to cut
wholesale line rental for ADSL connections from £25 to £14.75 a
month from April. He said BT would encourage all service providers
to use the wholesale saving to set new prices for consumers and
businesses.
David Harrington, chairman of the Communications Managers
Association, welcomed the price cuts but criticised BT for dragging
its feet.
"At long last BT has grasped the opportunity that has been staring
it in the face for three years," he said.
"It is tremendous news for business users as there is now a real
alternative to leased-line technology."
E-commerce minister Douglas Alexander also welcomed the move.
"Provided BT's wholesale prices remain fair, today's announcement
is excellent news for consumers and businesses," he said.