Potential higher costs to fund rural broadband

BT could be allowed to charge more for internet connections in the countryside, according to proposed rule changes by Ofcom.

The regulator’s suggested changes are designed to encourage ‘bolder investment in broadband’, according to The Sunday Times.

They would see permitted to charge more to broadband providers using its Openreach network to fund high-speed fibre in rural areas. Providers such as TalkTalk and Sky would then have to decide whether to pass on the extra costs to consumers.

Ofcom describes the proposals as a ‘radical departure’ from current arrangements and argues that it would allow Openreach to ‘profitably invest in full fibre at low risk’ and clarified that ‘it is unlikely our proposals will lead to people in rural areas paying more than customers in towns and cities’.

Full article:

→ The Times - BT, led by Philip Jansen, sees chance to charge more for rural broadband


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