BT cuts wholesale charges by 12%

Internet access across the country will be cheaper for millions of people after BT slashed its wholesale charges to rural areas.

Firms that use the telecommunications company to supply internet access to remote locations will benefit from BT's 12% annual price reduction below inflation for the next three years.

The telecoms giant has been instructed to cut its prices by regulator Ofcom.

The move could lead to savings in up to three million homes and businesses across rural areas including Yorkshire, Cumbria, Northumberland, the South West, Wales, Scotland, and Northern Ireland, Ofcom said.

But the regulator added that the reduction doesn't include connection, which brings the price cut to 11%.

Residents in remote rural locations have been forced to pay more for delivery than those living in towns and cities. But Ofcom is hoping to encourage BT and other internet providers to invest more in upgrading their systems.

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