Major BT breakthrough could lead to cheaper broadband prices for YOU
BT has today secured a major breakthrough, which could lead to more affordable prices for some of the fastest broadband plans on the market.
Superfast broadband could be about to get much, much more affordable. That's because BT-owned Openreach, which owns most of the broadband infrastructure across the UK, has confirmed plans to slash the wholesale prices charged to third-party firms that rely on its full-fibre internet cables.
With these savings now being passed onto providers that rely on Openreach, including the likes of Sky, EE, Vodafone, TalkTalk, and others, it could see monthly prices drop for customers across the country. The proposed price cut could see the monthly wholesale rental of 115Mbps and 1,000Mbps connections drop from £17.44 and £31.57 down to £15.50 and £22, respectively. Those are substantial savings.
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Changes coming to BT could mean lower prices for customers
For those who don't know, full-fibre – also known as Fibre-To-The-Premises (FTTP) – refers to connections without any ageing copper cables. Fibre-optic cables allow for much faster speeds, up to 1,000Mbps compared to the 70Mbps average download speed nationwide, and aren't impacted by bad weather.
When BT-owned Openreach first floated plans to slash wholesale prices back in July, some rival broadband suppliers raised concerns. Alternative network builders, which operate outside of Openreach, such as Virgin Media, were among those who raised concerns after having collectively spent billions on their own rival FTTP networks, ISPreview reported.
These telecommunication firms fear the Openreach price cut, which is known as the Equinox offer, could ultimately lead to less competition within fibre infrastructure. However, despite these concerns, regulator Ofcom this week confirmed "no action" will be taken against the price cut.
In a statement, the regulatory body said: "Our view is that we should take no action at this time. In reaching our view, we have considered the impact on competition. For the reasons set out above, we do not consider that the Equinox Offer will have a material adverse impact on competition. We have also considered the impact on different stakeholders."
In response to the news, Mark Shurmer, managing director for regulation at Openreach, said: "This is a positive step as we continue to invest in upgrading the UK’s digital infrastructure. Our new pricing gives ISPs more long term certainty, enables them to compete in a highly competitive market, and makes ultrafast Full Fibre technology the default choice wherever it’s available – it’s great news for homes and businesses all over the UK."
For consumers, the wholesale price cut – which is due to come into effect on October 1 – could be passed onto them. However, it may take some time for them to be able to take advantage of this discount, due to the rollout of FTTP infrastructure.
So far, Openreach infrastructure is able to provide FTTP broadband to 5.2million homes in the UK. By December 2026, the target is for this figure to rise to 26million. Since the discount is only available on these future-proofed cables, it could take some time to see nationwide prices drop.
Thankfully, there are plenty of brilliant broadband deals available right now – with no wait necessary. If you've had your current contract for some time, you could be missing out on the chance to save hundreds of pounds or benefit from faster speeds. Recent research from Vodafone claimed that out-of-contract customers could save as much as £300 a year by switching to a brand-new deal.