Just a week after BT announced that it has reached a million unbundled lines, it has announced how its wholesale pricing will change after it has unbundled another 500,000.

This should benefit consumers, as a drop in the wholesale broadband pricing will hopefully mean a drop in consumer broadband pricing. BT is predicting that it will have reached its target by May 2007.

Its most highly-used wholesale broadband product, BT IPstream, will drop from £8.40 per line to £7.63 per month, and this price is expected to drop further in a second round of changes planned for January 2008.

At high density exchanges, service providers will receive a greater rebate than they do now, so that the net monthly rental price will drop from £7.30 to £6.39.

Other wholesale prices are also be adjusted, but consumers won’t be interested in the pennies and pounds of the wholesale price until it affects them favourable.