BT has agreed to cut prices for both of its wholesale high-speed internet products, following rivals' complaints to Oftel that its price-cutting was unfair.
The telco had previously promised to cut its IPStream product by around £1.75 per month while leaving the price of its DataStream product untouched.
But now it has agreed to cut charges for the DataStream wholesale product by 70p per month, plus further discounts of up to 17p.
IPStream provides the backbone for ADSL broadband connections resold by internet service providers (ISPs) such as BTOpenworld, Freeserve and AOL, but is exclusive to BT Wholesale.
DataStream allows rival wholesalers to offer services to ISPs or direct to customers by connecting to BT's network and then sending traffic via their own backbones.
"As part of our drive to reduce broadband prices, we agreed, in discussions with Oftel, also to cut DataStream prices," said Paul Reynolds, chief executive of BT Wholesale.
"This is good news for the industry and a further boost to the broadband market."
The changes will give other operators the opportunity to cut monthly prices for their own consumer and business broadband customers. The new wholesale prices will come into effect in June.
But competitors such as Thus, which filed the original complaint with Oftel, are still unimpressed, saying that BT has done simply the bare minimum and that the watchdog should demand further cuts.
"The price cuts announced by BT today appear to be the minimum required to prevent the immediate imposition of a provisional order by Oftel," said Ian Hood, director of communications and regulatory affairs at Thus.
"We do not the believe the price cuts go far enough, but we welcome Oftel's rapid intervention into what we see as yet another abuse by BT of their market dominance.
"We look forward to further changes to the DataStream product, including additional price cuts, upon the completion of Oftel's investigation."
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