BT has been ordered to reduce its wholesale internet prices for rural areas.
Firms using BT’s network to supply remote locations will have their annual bills slashed by 12% below inflation for the next three years.
Ofcom has demanded the price cut to encourage internet providers and BT to invest more in upgrading their systems.
Customers in remote areas often face higher internet bills due to increased delivery costs.
Connection charges are not included in the reduction, meaning the effective price cut will be around 11%.
Ofcom said up to three million homes and businesses would benefit from the reduction, particularly those in remote areas of Scotland, Wales and Northern Ireland, the South West, Yorkshire, Northumberland and Cumbria.
Copyright © Press Association 2011
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