Laptop in a field
Rural broadband costs could be set to rise even higher

Rural broadband faces more charging headaches

Money could be about to get tighter for users who already pay for having the wrong postcode

Written by Janie Davies

Broadband operators are hammering customers who live in "broadband blackspots", charging them up to £15 a month more than other users, and an Ofcom review could increase costs even further, according to research.

Twelve million people live outside Tiscali's network coverage area and must pay an extra £8 per month for broadband, while AOL's blackspot covers nearly 10 million homes and these customers are charged an extra £10, said the study by price comparison web site Moneysupermarket.com.

Blackspots exist where an ISP does not have its own equipment installed in the local exchange and has to buy connectivity from BT on a wholesale basis, which typically costs more.

And the situation is about to get worse, as Ofcom prepares to review charges, said Rob Barnes, head of broadband and mobiles at Moneysupermarket.com.

“Millions of people are penalised for living in these broadband blackspots. Major household names such as AOL, Tiscali and Talk Talk charge extra for those outside their network and as a result pass on costs of up to £15 per month," he said.

“With the Ofcom review of BT’s Openreach charges due at the end of the year, costs are certain to rise. Ofcom should be ensuring providers accessing wholesale areas are charged a fair amount in order for the provider to then pass on the best value deal to the consumer."

reader comments

related articles

BRC volunteerRetail

British Red Cross upgrades EpoS network

The charity is replacing its legacy point-of-sale systems to improve service and connections with head office platforms 02 Jul 2008

 

Scotland extends broadband use with £3.3m deal

The Scottish government is improving broadband provision following a spate of access problems 30 Jun 2008

Broadband needs our full support

Entire industries already depend on broadband for their existence 12 Jun 2008

Next generation broadband will create digital divide

Calls for new regulatory framework 12 Jun 2008

Next-generation networks may create a new divide

Counter-measures to access inequality must be considered now, says the Broadband Stakeholder Group 09 Jun 2008

Evening surfers stole my bandwidth

Speed tests show many broadband providers are still failing to address peak period congestion 18 Jun 2008

Community project connects 600,000 pupils and teachers

A local authority venture has awarded a three-year broadband deal to connect 2,100 schools 24 Jun 2008

Ofcom drops broadband regulation

Wholesale broadband market will be deregulated in areas of high competition 21 May 2008

Tiscali attacks Moneysupermarket over broadband pricing report

A price comparison web site report on rural broadband charges has drawn a furious reaction from Tiscali 09 Jul 2008

Ofcom deregulates 70 per cent of broadband market

Could mean better deals for consumers 23 May 2008

related whitepapers

today's top stories

IT's stock is soaring at the LSE

London Stock Exchange IT chief David Lester explains to Angelica Mari how the integration of Borsa Italiana is keeping his team busy, despite the worsening economy 20 Nov 2008

Keeping IT in fashion

John Bovill has been hooked on retail since his early years as a fashion market trader. His industry knowledge is now helping him build a slick IT operation, reports Charlotte Moore 20 Nov 2008

Cutting-edge IT delivers the goods

Chief technology officer Jay Bregman explains how constant innovation is part and parcel of his strategy for delivering competitive advantage at eCourier 20 Nov 2008

Computing podcast: Europol's data sharing woes; credit card protection at Cotton Traders

The pan-European fight against organised crime is undermined by lax data sharing arrangements; and Cotton Traders enhances its credit card protection 20 Nov 2008

Keeping IT on track

Catherine Doran, winner of Computing’s IT Leader of the Year award, tells Angelica Mari of her determination to drive on with technology-led transformation at Network Rail despite uncertainty over funding 19 Nov 2008

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Advertisement

Jobs

Related jobs

Job of the week

Job alerts

Sign up here

Find your next job

IT Salary Checker

Check salary here

Advertisement

White papers

Search white papers

Top categories

VPN, Extranet and Intranet Solutions

WAN/ LAN Solutions

Network Security

Interoperability-Connectivity

Grid/ Utility Computing

Latest poll

Will attempts to rebrand IT as a "cool" choice of profession increase the number of IT graduates?

Will attempts to rebrand IT as a "cool" choice of profession increase the number of IT graduates?

Can brand building reverse a decline in IT graduate numbers?

Previous poll results

Latest audio and video articles

Video

The definitive guide to converged communications

Five key trends and five best practice tips to help you improve your corporate communications 20 Nov 2008

PodcastAudio

Computing podcast: Europol's data sharing woes; credit card protection at Cotton Traders

The pan-European fight against organised crime is undermined by lax data sharing arrangements; and Cotton Traders enhances its credit card protection 20 Nov 2008

Latest in-depth articles

StarFeatures

Retaining the stars of IT

Jim Mortleman investigates the innovative techniques IT leaders are using to hang on to their star performers 20 Nov 2008

Dave BaileyComment

Clouds darken outlook for Vista's successor

Windows 7 looks like being an improvement on Vista, but economic and environmental concerns may mean few enterprises will rush to adopt it 20 Nov 2008

Advertisement

Primary Navigation