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BT rejects wholesale price changes

BT is not happy with Ofcom's changes to wholesale prices, and is complaining it will effectively make a loss on each connection.

Ofcom sets prices for BT's wholesale division Openreach. From today until May 2010 BT can charge £86.40 for each unbundled line - up from £81.69. Where a broadband provider shares the line with BT, by only providing broadband, the telco can charge £15.60 - the same as last year. Other charges go up in line with underlying cost increases.

Ofcom's chief exec Ed Richards said: "The new prices will enable Openreach to earn a fair return whilst allowing continued strong consumer take-up of broadband at competitive prices."

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