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UK's Ofcom to Enforce Lower Superfast Broadband Charges

Bottom Line: The UK government's communications regulator is planning new and better deals for 'superfast' broadband users.

Superfast fibre optic services [SFOS] now account for around 13% of all broadband connections in the United Kingdom, prompting communications regulator Ofcom to impose new measures designed to achieve better SFOS deals both for consumers and businesses. SFOS connections are usually made via fibre-optic cables, achieving speeds more than double the UK average. To encourage greater use of the technology Ofcom proposes to ...

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... shorten the minimum length of contracts and cut the costs charged by broadband providers when switching customers.

In a recent report Ofcom said upgrading from slower connections was becoming cheaper, and is increasingly popular with businesses and consumers alike.

However, the watchdog also found that switching between one superfast provider and another remains expensive.

Currently, ISPs [insternet service providers] using BT's superfast Openreach network must pay BT a £50 fee if they want to switch a customer on to their service - a charge that is frequently passed on to the customer.

Ofcom plans to slash the cost of switching from the current £50 fee to between £10 and £15. The regulator also plans to reduce the minimum contract length to one month.

According to Ofcom, the proposed measures are intended to ensure that BT's access charges for its fibre network are "fair and reasonable".

Read the original unabridged BBC.com article.

[Estimated timeframe: Q3 2013 onward]

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: BBC.co.uk
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=6130

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