BT given go-ahead to increase charge to rivals
After months and months of discussions, OFCOM has today set out a new system which will see British Telecom allowed to increase its charge to competitors using its network by up to 11%. Not only is this a serious development for BT but it will also allow the industry, and BT in particular, to invest in the long-awaited national broadband fibre-optic network. This was the main reason for BT's insistence upon a price increase although this has been refuted by many of its competitors.
British Telecom is planning to spend tens of billions of pounds over the next few years on the introduction of a UK wide fibre-optic network which will increase broadband speeds substantially. This has the potential to push the UK back towards the higher tier of the worldwide broadband sector which has left the UK behind in recent times. But who will pay for the increased charges?
The potential increase in charges could signal the end of cheap broadband services in the UK with providers forced to increase their own charges to cover the BT change. While the move should not happen immediately, there are suggestions that in 2009 we will see a reduction in the number of introductory offers and special rates for broadband users.
Share this..
Related stories
UK government receives timely boost
In what must have been the worst two weeks in the political life of Gordon Brown it looks as though there is the possibility of a silver lining. The National Institute for Economic and Social Research has highlighted the first increase in industrial output in the UK for more than 12 months, prompting suggestions that the economy is turning. While there is still some way to go until we see a fully...
Read MoreMarketing budgets fell towards end of 2009
The latest Bellwether report has cast doubt on the confidence of UK businesses in the UK economy. The survey, which is well respected in the marketplace, confirms that the final quarter of 2009 saw marketing budgets across the UK fall to a two-year low. This would seem to be at odds with hopes that the UK economy has left the recession behind in the final quarter of 2009 and moved back onto the gr...
Read MoreWomen will rule the roost financially by 2020
By 2020, women will make the majority of financial decisions in the home, according to a new report by National Savings & Investments (NS&I).NS&I said that the number of men making key financial decisions has declined by two per cent, to 20 per cent of households, in the past five years, while the number of women having the final say has risen from ten per cent to more than 12 per cent.Future Foun...
Read MoreSimple ways to save money : Insurance premiums
The average home in the UK is likely to have a number of insurance policies in place including home insurance and car insurance to name but two. It is also well known that the vast majority of people throughout the UK tend to pay their premiums monthly rather than one-off payments at the start of every year. However, while there are upsides to paying monthly premiums there are also significant dow...
Read MoreUK minister faces questions over tax affairs
Baroness Scotland, the attorney general, is this evening at the centre of mysterious questions regarding the taxation of her former housekeeper's salary. The situation regarding the former housekeeper has been in the press for some time, after it was revealed she was actually an overseas visitor to the UK who had overstayed her visa and was here illegally. Even though the situation seemed to have...
Read More