The UK households would soon get some piece of mind as telecom regulator plans to reduce broadband costs. This will have a direct impact on your household bills which would shrink to lower limits. Even if you are currently on the best broadband plans, you will still make savings as the overall cost of broadband service will soon reduce in the coming future. Ofcom plans to reduce the wholesale price that Openreach charges for broadband packages from £88.80 to £52.77 on 2020-2021.
Owned by BT, Openreach is the company that provides cables for telephone and broadband networks across the UK. It connects all businesses and homes to the national broadband and telephone network. If the cable and networking cost is reduced, it would impact the overall broadband bills as well. The regulator also hinted that by doing so, it will encourage BT’s competitors to offer broadband packages at cheaper rates. With this, the regulator expects the UK broadband sector to soon offer the cheapest broadband tariffs.
Ofcom released a statement to announce slaying of Openreach wholesale cost by saying that it wants to “provide incentives to invest in ultrafast networks, while promoting competition and protecting consumers from high prices. We would expect much of this reduction to be passed through by retail providers to their customers, resulting in lower bills. Our proposals also provide an incentive for BT’s rivals to invest in their own ultrafast networks for the longer term. Ofcom will monitor Openreach’s performance closely and step in if the required standards are not met.”
CityFibre, that leads the space of the UK’s biggest providers of wholesale fibre network infrastructure, described the move as a “major step forward”. Ofcom also declared that it will ask Openreach to pace up services and repairs. The regulator said that Openreach should finish 93% of faulty repairs within two days as opposed to 80% that it does currently. Moreover, the regulator suggested that Openreach should finish 97% of the repairs within six to seven working days.
Along with doing every bit for the consumers to get the cheapest broadband plans, the regulator would ensure that Openreach manage the appointment of 90% installations within 10 working days and 95% connections on the date pre-decided between Openreach and the telecom provider. Currently, 90% of the connections are made on the deadline while 80% of installations are done within 12 working days.
To sum up, Ofcom is taking strong measures to cut down household bills and is facilitating the customers with cheaper broadband deals. If all UK Broadband providers get cables at cheaper rates then they can slash their operational costs and offer affordable broadband service. Find 20 Fastest UK Broadband Providers
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