Cheaper UK Web access nearer

LONDON, England -- Unlimited Internet access could become cheaper for millions of users in the UK under price cuts proposed by telecoms regulator Oftel.

Oftel, the Office of Telecommunications, wants BT to slash the amount it charges other telecoms firms to connect Internet service providers such as Freeserve and AOL to the network by seven percent.

A BT spokesman said that Oftel had based its proposed cut on "outdated" figures.

Oftel's director general of telecommunications, David Edmonds said: "Operators should ultimately be able to pass some or all of this saving on to their customers."

Currently four million homes in the UK pay a flat monthly rate, often £14.99 ($21.50) to surf the Web for as long as they want.

Around 11 million homes are online. The majority pay according to time spent logged on to the Web.

Oftel is pushing for the price cut after studying BT's cost base for the past 18 months.

Edmonds said: "Cuts in BT's charges will mean UK consumers will continue to enjoy some of the cheapest prices in Europe for Internet access."

Consultation on the planned changes will close on March 19 and Oftel intends to take a final decision in the spring.

The proposals cover only narrowband services. BT is already planning to bring down the cost of broadband access under new chief Ben Verwaayen.

The British telecoms giant, once a government-owned monopoly, still controls 80 percent of British phone lines. The company said the proposed cut was based on outdated cost figures.

A spokesman said that Oftel had based its proposed cut on "outdated" figures. He added: "The seven percent reduction is more than it needs to be."

Oftel said it would make a final decision in the spring.

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