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BT to slash cost of broadband on Thursday?

It's just a rumour, says telco

  • Chris Lee
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Speculation has swelled that BT chief Ben Verwaayen is set to halve the cost of broadband access for business and home users.

Verwaayen is expected to speak at a press conference on Thursday, where the decision may be unveiled.

But a BT spokesman has denied weekend newspaper reports that Verwaayen will unveill the strategy, which could boost the UK's ADSL broadband subscriber base of around 150,000 users.

"We've no idea where these rumours came from," the spokesman said. "Ben will say a few words on Thursday about a wide range of issues, not just broadband."

BT's wholesale customers pay a monthly fee of around £30 per broadband line, but the UK was recently ranked 22nd out of 30 countries in terms of broadband penetration. By comparison, Germany has an estimated two million ADSL subcribers.

BT said that if an announcement was made, it expects regulator Oftel to react negatively.

"Whenever it is said that BT is considering cutting broadband costs, Oftel jump on our backs saying we're anti-competitive," the spokesman concluded.

Meanwhile, in the US, Microsoft boss Bill Gates berated the high price of US broadband access, saying it lagged behind competing economies.

Speaking at the World Economic Forum in New York, Gates demanded cheaper access to stimulate demand, citing Japan as an example where such price cuts have led to increased interest.

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