Oftel has cleared BT of allegations it behaved anti-competitively over its wholesale high-speed internet service charges.
The regulator said BT's recent price cuts in many of its wholesale broadband internet services reflect cost-savings by the company and are not anti-competitive.
Last month, BT said it would cut the amount it charged internet service providers (ISPs), such as Freeserve, to use its broadband network.
David Edmonds, director general of telecoms at Oftel said: "Oftel has looked very carefully at BT's new prices.
"It found the price reductions reflected the significant cut in network and provision costs. BT can pass these cost savings on to ISPs, who, in turn, can reduce their own retail prices for broadband internet access to customers."
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