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BTwholesale deals a Royal Flush
Thursday 21 February 2002 10:13:00 by Andrew Ferguson

BTwholesale has just released information on the much talked about price cuts. The magical wholesale price is now £xxx+VAT - which is likely to translate into around £xxx - £xxx inc VAT for the retail market.

By building up the anticipation of a price cut, rather than simply announcing one, BTwholesale appear to have been playing a very sly hand. Why? Well as most other price reductions have drawn complaints and concerns from LLU operators - this latest one is likely to cause much consternation. All we can do now is hope that Oftel do approve the price cut. Certainly whoever blocks the price cuts is like to be seen as the big bad wolf - a label that BTwholesale is doing it's best to avoid.

In terms of LLU there is plenty of room for other operators to provide higher speed and quality services, and the feeling is that perhaps BT should be left with the bulk of the consumer market now - and simple price controls to be used to ensure that in the future BT dont simply reverse the price cuts once everyone is addicted to broadband.

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