UK's Ofcom allows Openreach to cut prices

(Sharecast News) - Britain's telecoms regulator has allowed BT to cut prices at its Openreach networking arm, despite claims from competitors that it would give the company an unfair advantage. 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network clients such as BT & Sky on the proviso that they use its full-fibre products for new orders instead of old outdated copper connections - often the subject of complaints because they have been poorly maintained.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.

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.

Reporting by Frank Prenesti for Sharecast.com