Ofcom calls for better value rural broadband

Ofcom is to force BT to reduce its prices for broadband in rural areas by 12 per cent below inflation per year.

According to the regulator, those who live in rural, less densely-populated parts of the UK should be given access to better value broadband services.

The watchdog believes that the price reductions will generate more competition among internet service providers and lead to cheaper retail prices, which will benefit consumers.

Ofcom estimates that as many as three million people will benefit from the move.

"These are mostly in rural areas including parts of Scotland, Wales and Northern Ireland as well as the south west of England, Norfolk, Yorkshire, Cumbria, Northumberland and other areas," the organisation added.

Sir Mike Rake, chairman of BT, told WalesOnline.co.uk that super-fast broadband is essential to maintaining the UK's future competitiveness and claimed that those who live in 'notspots' can become deeply frustrated by their lack of internet connection.