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Ofcom on price changes

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Openreach will be free to continue to offer enhanced care services

Industry regulator Ofcom has published a consultation on the prices that Openreach can charge communications providers (CPs) to enable them to rent access to telephone lines on a wholesale basis.  

Ofcom is proposing to move from rental charge controls on both residential and business lines to a single control on a new core wholesale line rental (WLR) service - available to both residential and business customers.

Openreach, it says, will be free to continue to offer enhanced care services - such as its existing WLR premium service - to customers and these will not be subject to specific charge controls. It also proposes new charges for new line provision and the transfer of lines.

The announcement today follows Ofcom’s statement on charge controls for local loop unbundling for telephone and broadband services, published in May this year.

WLR is a product Openreach supplies to CPs, allowing them to rent access lines on wholesale terms, and resell the lines to customers. It gives consumers the opportunity to choose alternative suppliers who can provide them with access and, in almost all cases, calls service and has been a key aspect of increased competition in fixed narrowband services.

The proposed new controls would apply until March 2013.

Information provider: Group Communications

Review date: 03/07/10