BT’s response to broadband price increase
Filed under: News | By: Peter Chubb
Posted on: March 10, 2009 | 1 Comment
We reported this morning about a report that was commissioned by the Carphone Warehouse, about BT increasing the price of wholesale broadband charges. BT (NYSE:BT) have decided to comment about this report, and put their side of the story to our readers.
BT’s response goes as follows:
This report, which Carphone Warehouse has commissioned, appears to be riddled with the most elementary mistakes.
Let’s look at some facts:
The UK has some of the lowest broadband prices and the highest broadband penetration of any European country.
While other Utility bills have soared, BT’s wholesale prices have been at the agreed level or lower for four years. And there were a series of price cuts of up to 60% introduced just last month. These cover some of the principal products bought by Carphone Warehouse and other service providers.
Any price changes introduced in the future will have to be approved by Ofcom. It will be up to service providers whether to pass these on to their customers or not.
BT is not making excessive profits.
BT is not exaggerating costs.
All these facts are regularly confirmed by independent regulator Ofcom.
Emma Gilthorpe BT’s Director of Industry Policy and Regulation said
“It is astonishing and ludicrous to suggest that people will be locked out of Britain’s Digital revolution by BT. The UK has the most competitive broadband market in the world, thanks in large part to the massive investment made in broadband infrastructure by BT.”
Leslie King
BT Newsroom
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What that says to me is the usual deal with all “deals”
Hook them low then hyke the price.
As they admit they have not put their prices up (and thank you for not doing that) but then to raise it so quickly is out of order. The customers who have taken BT up on the service (and i am not only talking end users i am also talking about the people who supply end users but contract themselves to BT) the price increase will effect many people but it has allowed BT and others to attract people to their service and then later on hit them with a price increase.
I for one use Virgin BB and no price increase here as already paying through the nose