Ofcom has set a maximum price of £81.69 per year that BT can charge its competitors to rent a fully unbundled local loop. This follows consultation on proposals published by Ofcom in September 2005.
On 1 August 2005, BT voluntarily reduced its fully unbundled rental charge from £105.09 to £80.00 a year.
The charge ceiling set by Ofcom is designed to promote competition in the broadband market by ensuring that BT’s wholesale charge is maintained at a transparent, reasonable and cost-orientated level.
The statement is available at: http://www.ofcom.org.uk/consult/condocs/llu/statement/
In setting the charge ceiling, Ofcom has taken into account the conclusions of its review of how much it costs BT to lay and maintain the copper access network connecting homes and businesses to its exchanges, and its review of BT’s cost of capital. Both reviews were published on 18 August 2005.
Separately Ofcom has also today published correspondence between Ofcom and BT Group plc in relation to the Undertakings accepted by Ofcom as part of its Strategic Review of Telecoms. These letters relate to the appointment of the independent members of the Equality of Access Board (EAB), which were announced by BT Group plc on 11 October 2005.