UK Broadband Costs Set To Rise By £30 A Year

Broadband costs within the UK are set to rise by £30 a year over the next three years it is claimed.

The expected rise follows BT’s plans to increase the wholesale cost it charges its competitors to run broadband and telephony services over its network.

The first of these BT increases will be this April where the wholesale cost of broadband per year per home will rise by around 11% to £91. This is set to rise to £112 per year in 2012, a 37% increase from today’s current wholesale prices – a rise that is supported by Ofcom.

The rise has been predicted in a study by Dr Chris Doyle of Warwick Business School. The study, funded by the Carphone Warehouse, who’s TalkTalk broadband and phone service uses BT’s network, criticised BT stating: “BT is very inefficient or it is exaggerating its costs, or it is being deliberately allowed to make excessive profits.”

In response, BT defended its price rises stating: “The UK has the most competitive broadband market in the world, thanks in large part to the massive investment made in broadband infrastructure by BT.”

With the government’s plans to give every home fast broadband access for all salary ranges, it’s estimated that more than 800,000 consumers will be unable to afford broadband if the rates do increase.