Monday, April 9, 2007

BT to Reduce Wholesale Broadband Charges

BT will reduce the price of its wholesale broadband products beginning next month. From 1-May-2007, service providers using BT Wholesale's most highly used product -- BT IPstream -- will benefit from a 9 percent reduction in the monthly rental charge, with the price falling from £8.40 per line per month to £7.63.

BT said there will also be further savings for service providers at high density exchanges, to reflect the lower cost of providing broadband in these areas. The current rebate scheme that covers 561 of these exchanges will now apply to a total of 1,016 exchanges. The level of this rebate is also set to increase from £1.10 to £1.24 from May 2007.

The increase in the rebate -- combined with the lower rental price - will reduce the net monthly rental price (i.e. rental less rebate) in these exchanges from £7.30 to £6.39. This is a reduction of 12.5 percent.

The revised rebate scheme will also apply to service providers using the BT Datastream product. The existing rebate of £1.15 for connections to the current 561 exchanges will be extended to the 1,016 designated exchanges. This will effectively reduce the monthly rental charge per end user from £7.05 to £5.90 in those areas from 1 May, 2007.