Ofcom cuts rural broadband prices

Rural broadband bills could fall after telecoms regulator Ofcom moved to cut the wholesale price that BT charges other Internet providers.

The company is the only operator in many smaller telephone exchanges and ISPs have to factor 'renting' BT's equipment into their price plans. That means customers often miss out on cheaper deals available in towns and cities. The reduction only affects broadband services of up to 8Mbps. From mid August until March 2014, Ofcom has ruled that BT must cut its rates by 12% below inflation per year. Rural campaigners welcomed the news.