Ofcom to lower rural broadband prices

3 million homes expected to benefit

Ofcom to lower rural broadband prices. Ofcom, Broadband, Internet, ISPs, rural broadband, BT, BT Broadband, 0

20 July 2011 9:39 GMT / By Hunter Skipworth

Ofcom is set to put a cap on the prices that BT Wholesale can charge ISPs in rural areas, meaning a reduction in broadband cost for countryside customers.

A yearly 12 per cent below inflation reduction will mean serious savings for those in the less accessible areas of BT's network.

Increased competition and a bigger adoption of broadband outside traditional built up areas should help lead to competition between ISPs and in turn bigger savings for customers.

Ofcom is pointing to more than 3 million businesses and homes benefiting from the change, including parts of Scotland and Northern Ireland.

The price cap will also hopefully act as an incentive for BT's competitors to roll out services in rural areas, bringing more choice to the consumer.

It could also mean an end to major broadband price differences between city dwellers, who have access to more offers than those living in the countryside.

Faster broadband may also be a knock-on effect, as ISPs increase bandwidth allowances to try and entice new rural customers.

All in all, a good internet day for those living outside the city.

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Ofcom, Broadband, Internet, ISPs, rural broadband, BT, BT Broadband