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06:43 5th April 2011
Consumers won't feel the benefits of Ofcom's initiative to cut down on the wholesale prices for broadband and landline, according to Richard Patterson, director of broadband comparison site BroadbandExpert.co.uk.
"Over recent years broadband prices have declined as competition has grown and it's likely that at least one of the main ISPs will take the initiative to be first to cut costs. As the cost reductions are spread over three years the benefits won't necessarily be seen immediately by consumers," he said.
The expert also said that the communications watchdog's proposals are set to promote increasing coverage from the current Internet Service Providers operating in the UK.
He said: "It's most likely to encourage increased coverage from existing ISPs rather than attract new players to the market."
His comments emerged as Ofcom said new prices that Openreach, BT's wholesale access division, will be able to charge communications providers to allow access to certain key wholesale telecoms services.
Posted by Derek Oldman
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