The proposals would reduce fees wholesale provider Openreach, BT’s network access division, could charge other telecoms companies for some of its main services.

Communications providers would be expected to pass on the savings to their landline and broadband customers, Ofcom said.

Prices have historically been regulated by Ofcom because BT has been found to have ‘significant market power’ in the delivery of these services.

The regulator is proposing revised ‘charge controls’ on some Openreach products.

Dominic Baliszewski, telecoms expert at broadbandchoices.co.uk said:
“It may take a while before Ofcom’s ‘charge proposals’ come into effect but this is really good news for broadband and phone customers – however many households may not even be aware that their provider is using Openreach to provide their service.

“Whilst this isn’t a major problem on the face of it, people need to be aware that their provider is benefiting from these wholesale price reductions in order to make a fuss if the savings are not passed on to them. For example, if wholesale oil prices fell but petrol stations kept prices high, drivers everywhere would protest. Broadband customers needs to be empowered with the knowledge to make the same kind of demands of their service providers.

“The market is already very competitive with a lot of strong deals around at the moment, but anything that can bring the price down further will really help those households who are having to tighten their belts.”