BT confirms rumoured broadband price cut

BT chief executive Ben Verwaayen has announced substantial cuts in wholesale broadband prices.

According to the BBC, Verwaayen said: "We need to underwrite broadband Britain, which will involve a substantial cost reduction on the wholesale side to allow all partners to have a fundamental repricing."

The news partially confirms reports in the press over the weekend, but it remains highly unlikely that the 50 per cent price cuts predicted in some papers will materialise.

Wholesale prices are currently £30 per month for engineer-installed DSL and £25 per month for the wires-only version of the service.
BT will face substantial regulatory and legal obstacles if it does attempt to cut those prices below cost price.