BT to cut the price of wholesale broadband

April 10, 2007 by  

Bt has announced its intension to cut the price of the broadband services that it sells via wholesale to other UK broadband providers. Result, you could be receiving cheaper broadband pricing by the middle of 2007. BT said it would cut the amount it charges other internet service providers for broadband by 9 per cent on 1 May, which could in turn allow the broadband ISPs to charge consumers less. A BT spokesperson said…

“reduced pricing will help ensure the further growth of a competitive market for broadband services”.

As well as the proposed price cut, BT Wholesale said it is also aiming to introduce speeds of up to 24Mbps by the start of 2008

Cameron Rejali, managing director for products and strategy at BT Wholesale said…

“The new pricing will deliver significant cost savings to our broadband service provider customers and underlines BT’s commitment to maintaining a competitive broadband market.Service providers can also look forward to a nationwide service offering broadband speeds of up to 24 Mbit/s which will start to be made available early next year as part of BT’s 21CN roll out. We will shortly start preparing our exchanges to support the delivery of these higher broadband speeds.”

However, it doesn’t necessarily follow that the price cuts will lead to savings for customers at the end of the line. I guess we’ll have to wait and see but here at Go-Broadband we can definately see at least 5% of the broadband wholesale price savings being passed on to the end-consumer or, at the least, faster broadband services in 2008 for 2007 prices.