Ofcom proposes price ceiling for fully unbundled lines
Ofcom has issued a proposal that is open for comment until 10th October 2005, whereby a ceiling will be applied to what BT can charge providers for a fully unbundled line. A fully unbundled line is one where the copper line is disconnected from any BT DSLAM or telephone service and connected to the other providers kit, who can then provide DSL or PSTN services as they wish.
The proposed ceiling figure is £81.85, which is actually marginally higher than what BT set as the annual rental price when it reduced pricing from £105.09 to £80.00 on 1st August 2005. For those wanting to read more on this visit http://www.ofcom.org.uk/consult/condocs/llu/.
The imposition of the £81.85 ceiling is not going bring about a rapid sea change in LLU, but it should help to boost confidence that BT cannot suddenly increase the line costs and ruin the economic models used by LLU providers.