BT is to be allowed to set its own prices for
residential phone line rentals and calls from this summer, under
proposals from telecoms regulator Ofcom.
Ofcom has controlled BT’s residential phone prices for the last
22 years, and says now is the time to end the control.
Ofcom says increased competition from other phone service
providers, cable companies and mobile operators means BT has no
reason to keep its prices higher than they should be.
In the past, the regulator has also set prices to prevent BT
from cutting them to a level where emerging competitors would not
be able to survive. Ofcom now says the open market is developed
enough to set its own prices.
BT said the proposal to end price controls this August will lead
to its basic phone prices falling. Users, including those who work
from home, will be waiting to see if line rentals fall as well as
call costs.
Those using broadband to get faster internet connectivity
usually have to hire a phone line to be able to get broadband.
In the last couple of years Ofcom has stated its aim of keeping
a lighter hand on the regulatory tiller.
Last month, the regulator said it wanted to concentrate more on
making sure newer and higher-end telecoms services for businesses
were fairly regulated.