Businesses could see the price of accessing the internet using broadband drop significantly following an announcement by the telecoms regulator.
Oftel has ordered BT to cut prices for other telephone companies which lease the lines linking its network with business premises.
The initial connection cost for telephone companies will typically be cut by 50 per cent and ongoing rental charges by 30 per cent.
Oftel hopes operators will pass the savings on to customers and encourage more firms to enter the broadband sector.
The proposals follow an investigation by Oftel which found BT was making a profit when it should be selling the service at cost price.
David Edmonds, director general of telecommunications, said: "Telecoms operators should pass on these significant price reductions to their business customers of leased line services."
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