Rise in broadband costs could threaten home learning

09:19 11th March 2009

Price rises from telecoms giant BT could see the cost of broadband access increase by £30, threatening the ability of some people to pursue home learning.

Increases of up to 35 per cent from BT could result in internet service providers (ISPs) being charged higher prices to use the company's infrastructure.

If prices do increase substantially then up to 800,000 people who currently enjoy a cheap broadband service will be unable to afford a connection and will not have access to home learning resources and other web-based facilities.

Dr Chris Doyle of Warwick Business School, whose study produced the warning, said: "BT is very inefficient or it is exaggerating its costs, or it is deliberately being allowed to make excess profits."

BT is currently considering raising prices by 11 per cent for spring of next year, but the company says that increases amount to less than 20 pence a week and should not result in widespread consumer price hikes.

Some ISPs use unbundled broadband networks, meaning they do not rely on BT infrastructure to provide their service.