Telecoms regulator Ofcom may force BT to cut the price of Internet access outside London.

In an effort to curb the cost of leasing capacity on BT’s networks, the regulator outlined proposed price caps. It said these would lead to “real-terms price reductions” for internet service providers and other firms.

Ofcom proposed that over the next three years, prices for lines using older technology should be subject to increases of no more than Retail Prices Index (RPI) inflation plus 6.5 per cent.

However, newer lines using ethernet technology would have to come down in price, with charges to be reduced by at least RPI inflation minus 8 per cent.

Ofcom said the caps were “designed to align the prices of these BT products with their cost by 2015”. The proposals will now undergo a consultation process which closes at the end of August.

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