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Five questions answered on Ofcom’s broadband changes

Is it really going to change things that much?

New Statesman
Photograph: Getty Images

Independent regulator and competition authority for the UK, Ofcom, has proposed new measures that they say will improve broadband deals for consumers. We answer five questions about the proposal.

What are the main proposals Ofcom is making?

In order to promote competition among providers and pass on savings to the customer, the regulatory body is proposing to cut the costs paid by broadband providers when switching customers, as well as shortening the minimum length of contracts.

It wants to cut the cost of switching to between £10 and £15, as well as reducing the minimum contract length to one month.

Currently, providers who use BT's superfast Openreach network must pay BT £50 if they want to switch a customer on to their service.

What has prompted these proposals?

In a recent report, Ofcom stated that upgrading from regular broadband connections to superfast – which is delivered through fibre-optic cables – was cheaper and is becoming increasingly popular. However, it said that switching from one user to another is expensive.

What has BT said about Ofcom’s proposals?

In a statement BT, which offers the BT superfast Openreach network, said it welcomed the plan: "We are pleased that Ofcom is maintaining pricing freedom for Openreach's fibre products.

"BT has already accepted a long payback period for its fibre deployment and its wholesale fibre prices - which are amongst the lowest in Europe - reflect this".

What do the experts say?

Marie-Louise Abretti broadband expert at uSwitch.com, speaking to the BBC said: "Targeting the market at wholesale level - offering monetary savings to broadband providers that are switching people - means it'll be up to ISPs [internet service providers] to make sure that cost savings are passed on to their customers.

"And with providers potentially saving up to £40 per customer, per switch, Ofcom must ensure this happens. We'd hope this move will see often hefty set-up fees scrapped, or at least reduced."

How many people in the UK currently use superfast broadband?

Only around 13 per cent of the UK has superfast broadband connection.