Broadband review could lead to price hike

Ofcom has launched a review into how much BT can charge rivals for using its Openreach broadband network.

The move could lead to higher costs for users if the firm is allowed to increase the £81.69 fee that competitors are charged per broadband subscriber when installing lines in BT exchanges.

Openreach claims that it is not generating enough revenue to continue annual expenditure of £1 billion on system improvements.

However, critics claim that BT is not providing a high enough quality of service to justify any increase.

James Parker of Moneysupermarket.com told the Mirror that the review is a "double-edged sword".
He said "It's positive as it will examine the quality of service Openreach provides.

"But the danger is that this could put the brakes on the reduction in broadband prices we've witnessed since Openreach was created in 2005."

A TalkTalk spokesman added: "This is a real threat to customer choice, value and innovation."