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ADSL broadband costs could be about to fall in the UK after BT announced price reductions to its wholesale connectivity offerings.

From May 1, the telecom giant will cut the price per line charged to internet service providers from £8.40 to £7.63, a 9% reduction.

BT is also extending a rebate scheme so that ISPs with equipment at high-density exchanges will pay less for the privilege.

The rebate will increase from £1.10 to £1.24. BT said the combined savings amounted to 12.5%.

If internet service providers, most of whom use infrastructure installed at BT's unbundled local exchanges, pass the savings on to customers, it could grow the UK's expanding internet population.

The number of broadband households grew by 11% to 50% last year, while broadband ISP revenues were up 18% according to an Ofcom report.

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Published 10 April, 2007 by Robert Andrews

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