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Ofcom plans superfast broadband changes | Ofcom plans superfast broadband changes |
(about 2 hours later) | |
Regulators have proposed new measures they say could lead to better deals for superfast broadband customers. | Regulators have proposed new measures they say could lead to better deals for superfast broadband customers. |
Ofcom is proposing to cut the costs paid by broadband providers when switching customers, and shorten the minimum length of contracts. | Ofcom is proposing to cut the costs paid by broadband providers when switching customers, and shorten the minimum length of contracts. |
It said it hoped the changes would promote competition among providers, who would then pass the savings on to customers. | It said it hoped the changes would promote competition among providers, who would then pass the savings on to customers. |
Currently around 13% of broadband connections in the UK are superfast. | Currently around 13% of broadband connections in the UK are superfast. |
Superfast connections are usually made through fibre-optic cables, providing speeds that are more than double the average for the UK. | Superfast connections are usually made through fibre-optic cables, providing speeds that are more than double the average for the UK. |
In a recent report Ofcom said upgrading from slower connections was becoming cheaper, and is becoming increasingly popular among customers. | In a recent report Ofcom said upgrading from slower connections was becoming cheaper, and is becoming increasingly popular among customers. |
But the regulator said switching between one superfast provider and another remained expensive. | But the regulator said switching between one superfast provider and another remained expensive. |
Currently, providers who use BT's superfast Openreach network must pay BT £50 if they want to switch a customer on to their service. | Currently, providers who use BT's superfast Openreach network must pay BT £50 if they want to switch a customer on to their service. |
Ofcom said this charge is frequently passed on to the consumer. | Ofcom said this charge is frequently passed on to the consumer. |
'Fair' charges | |
BT said in a statement it welcomed the plan: "We are pleased that Ofcom is maintaining pricing freedom for Openreach's fibre products. | |
"BT has already accepted a long payback period for its fibre deployment and its wholesale fibre prices - which are amongst the lowest in Europe - reflect this". | |
The new provider is also committed to paying BT to use the network for one year. | The new provider is also committed to paying BT to use the network for one year. |
Ofcom is also proposing to cut the cost of switching to between £10 and £15, and reduce the minimum contract length to one month. | |
It said the measures were designed to ensure that BT's charges for access to its fibre network are "fair and reasonable". | It said the measures were designed to ensure that BT's charges for access to its fibre network are "fair and reasonable". |
Marie-Louise Abretti, broadband expert at uSwitch.com, the price comparison and switching service, said she hoped price cuts would be passed on to households: "Targeting the market at wholesale level - offering monetary savings to broadband providers that are switching people - means it'll be up to ISPs [internet service providers] to make sure that cost savings are passed on to their customers. | |
"And with providers potentially saving up to £40 per customer, per switch, Ofcom must ensure this happens. We'd hope this move will see often hefty set-up fees scrapped, or at least reduced." |
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