Ofcom consultation could force BT to cut fibre broadband prices

BT could be forced to reduce its wholesale fibre optic broadband fees if Ofcom launches a consultation on the matter.

The industry regulator is expected to consult on fibre pricing before the end of May, with independent equities broker Redburn Partners telling the Financial Times there is clear evidence that BT's network dominance had allowed it to both boost its market share and reduce its rivals' margins.

As such, Redburn said it believes Ofcom could slash the telecoms giant's wholesale fibre charges by at least £2 per month, with the potential for further cuts to be introduced as a result of ongoing price monitoring.

By the end of 2013, BT's fibre optic broadband network had reached more than 18 million homes and businesses across the UK. 

Openreach, the company's local access network business, achieved 339,000 connections in the three months to December 31st, with around 2.4 million properties now served by BT's superfast broadband infrastructure.