BT told to slash broadband costs in North Yorkshire

Ofcom, the UK telecoms regulator, has instructed BT to cut annual prices by 12 per cent below inflation for the next three years for firms that use its network to supply remote rural locations.

Up to three million homes and businesses will benefit from the reduction, Ofcom said, especially those located in the hard-to-access parts of Scotland, Wales and Northern Ireland, the South West, Yorkshire, Northumberland and Cumbria.

The reduction does not include connection, which reduces the effective price cut to about 11 per cent, Ofcom said.

Higher costs of delivery mean customers in remote areas pay more than those in the cities and towns, but the regulator wants the price cut to encourage both internet providers and BT to invest more in upgrading their systems.

This should result in lower prices and also faster access speeds for country areas, Ofcom added, while also encouraging more providers to install their own networks to compete with BT’s wholesale business.

The regulator says 78% of broadband customers are in densely-populated and urban areas, which have effective competition and get a good service, but deals are still limited for the population outside of these areas.