BT Cuts LLU Prices

As predicted by Comms Business Magazine new site last week BT has announced that it will be introducing new Local Loop Unbundling (LLU) price reductions to further stimulate competition in the UK broadband market. LLU operators will benefit from a 40 per cent reduction in the price of connecting new broadband customers to BT’s fully unbundled LLU offering. This follows BT’s commitment to industry in June that it would bring the price of LLU New Provide charges in line with those for Wholesale Line Rental (WLR) and underlines BT’s ongoing commitment to making LLU a success.

From 15 December, the price for new provides on the fully unbundled product will be reduced from £168.38 (ex. VAT) to £99.95 (ex. VAT). BT will also be withdrawing the minimum term rental charges for both its shared and fully unbundled products giving LLU operators the opportunity to pass this benefit on to end-customers.

This reduction follows the 70 per cent reduction in total charges for shared LLU introduced by BT Wholesale in September 2004. With the introduction of these price reductions, the UK is now ranked third in Europe on price comparison for LLU.

Steve Robertson, CEO, Openreach said, “These price reductions clearly demonstrate BT’s ongoing commitment to LLU and are designed to create additional certainty and confidence for operators investing in LLU. Openreach has been set up to deliver transparent and equal access for all to our network. We are confident that the price reductions announced today will further boost demand and stimulate competition in the market.”