By Max Clarke

BT’s wholesale broadband access branch, Openreach, is having its price capped by communications industry regulators Ofcom as the company’s dominance in the market has led to uncompetitive pricing.

The price of landline and broadband services will see significant reductions.

Ofcom’s executive summary of the consultation read:
‘We are proposing new controls as a result of our conclusions in the reviews of the Wholesale Local Access and Wholesale Fixed Analogue Exchange Linemarkets. In both markets, we have identified that BT (Openreach) has Significant Market Power and that charge controls are necessary as a remedy to Openreach’s ability to set excessive levels of charge for LLU and WLR services in the respective markets.‘

Ofcom this morning also announced that it is to slash its budget by over 25%, or some £26 million a year within the next 12 months as part of an overall price review being carried out until 2014.