Plans for cheaper rural broadband

By Steven Birch

Around three million homes and business in remote areas could have cheaper broadband in the not-too-distant future after Ofcom announced new plans.

The communications regulator has revealed that it is considering proposals to limit the amount BT can charge internet service providers in areas where they are the sole provider by between 10.75% and 14.75%. The move could lead to greater competition between retail internet service providers.

BT said that while it understands Ofcom's hopes of creating a more formal wholesale broadband pricing control in rural regions, it warned that it must not deter investment.

A spokeswoman 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."

The spokeswoman also said the regulator's decision would not have a material impact on the company.