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Oftel, the UK telecommunications regulator, has ordered BT Group to cut its charges for wholesale unmetered internet access by 17 per cent.
Director General David Edmonds, said: "BT has made significant improvements to its network since wholesale unmetered Internet access was first introduced over three years ago. At that time, BT included several mechanisms to route Internet calls through to the appropriate service provider and call management measures to protect its network from being overloaded. BT’s network can now process Internet call traffic without these additional measures.”
As a result, BT’s wholesale charge will be reduced and backdated to June 2002, the date from when these additional measures were not needed.
"I hope that operators pass these savings on to their customers...and that UK consumers continue to benefit from one of the most competitive dial-up internet markets in the world," he added.
According to the FT, BT said it would not appeal against the decision which was "absolutely expected". The group declined to say how much the cut would cost but industry sources placed the figures at E28 million in backdated payments and E23.8 million per annum going forward.
Director General David Edmonds, said: "BT has made significant improvements to its network since wholesale unmetered Internet access was first introduced over three years ago. At that time, BT included several mechanisms to route Internet calls through to the appropriate service provider and call management measures to protect its network from being overloaded. BT’s network can now process Internet call traffic without these additional measures.”
As a result, BT’s wholesale charge will be reduced and backdated to June 2002, the date from when these additional measures were not needed.
"I hope that operators pass these savings on to their customers...and that UK consumers continue to benefit from one of the most competitive dial-up internet markets in the world," he added.
According to the FT, BT said it would not appeal against the decision which was "absolutely expected". The group declined to say how much the cut would cost but industry sources placed the figures at E28 million in backdated payments and E23.8 million per annum going forward.