Ofcom to Fix Prices for BT

The UK Telecom regulator, Ofcom has decided to fix the prices for BT. Communications Regulator, Ed Richards said that the commercial negotiations have already started.

BT is currently discussing the matter with its rivals including: Virgin Media, Fujitsu, BSkyB, TalkTalk. The deadline of these negotiations is June 2011.

Other telecom operators which access its network of telegraph poles and underground ducts will have to pay the charges announced by Ofcom. Re-using of the existing infrastructure of BT will save its rivals from digging up roads to lay new cables. The re-use of the infrastructure will contribute to a superfast broadband service in remote areas.

The matter was raised by the Damian Collins, Conservative MP for Folkestone & Hythe in front of the Select Committee for the Department for Culture, Media and Sport, which is responsible for the UK’s broadband network.

Mr. Richards said the final announcement will not be surprising for BT as many parts of it have already been regulated. He further added that the final prices will encourage more companies to join the trial.

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