BT drops ADSL prices by £5

BT Wholesale is dropping its ADSL prices by £5 to £30 a month, but rivals believe it is "too little too late".

From 1 September, wholesale asymmetric digital subscriber line product prices will be reduced.

Paul Reynolds, CEO of BT Wholesale, said in a statement that the initiative is part of the company's plans to stimulate demand for broadband services and is all part of BT playing its "part in helping broadband Britain".

However, Richard Sweet, regulations manager at Thus, said he would like to see the price drop to £20 a month.

"£20 would be a fairer price. This price reduction is too little too late," he said.

He added: "Thus is concerned BT has been able to manipulate its dominant market position by offering prices below market value and "crossing over" money it makes in other areas of the business."

Sweet said, this "margin squeeze" was brought to the attention of regulator Oftel last year and little has been done, but he said the telco regulator is considering re-opening its investigation, with more information to be released at the end of August.

"To date they have been allowed to get away with it," he said.