UK's Ofcom allows Openreach to cut prices

Openreach can now implement its so-called “Equinox 2” plan that will cut prices for broadband network clients such as BT & Sky on the proviso that they use its full-fibre products for new orders instead of old outdated copper connections – often the subject of complaints because they have been poorly maintained.

“Based on the evidence available to us, we don’t consider Openreach’s new pricing discounts to be anti-competitive," Ofcom said in a statement. Rivals such as Virgin Media O2 have been fighting the change.

The decision comes after billionaire Patrick Drahi lifted his stake in BT to 24.5% from 18% on Tuesday, after a hit to the share price on poorly-received results and job cuts last week.

Ofcom said it had taken into account the impact of the pricing plans on consumers, rival broadband providers and so-called 'altnets', new entrants in the underserved full-fibre market.

Reporting by Frank Prenesti for Sharecast.com