Broadband prices set to tumble under Ofcom plan to cap BT fees Under the proposed changes, BT's wholesale division, Openreach, would not be able to charge other providers more than £87.41 to rent its broadband and telephone services to a property in the 2012/13 financial year. The cap is 4.5pc lower than the current limit of £91.50 a year, and would be ratcheted down a further 5.9 per annum after that. Ofcom has submitted its proposals to the European Commission, which has separately called for tighter limits on prices for broadband, and is due to publish a final decision early next month. It is the third time Ofcom has lowered the cap on BT's prices, but is at the most extreme end of previous guidance. BT will take the biggest hit on the amount it can charge for wholesale access to just its broadband or telephone services. Under Ofcom's proposals, the cap for "unbundled" broadband services would be set at £11.92 for the year, down from the current limit of £14.70. After that, it would be reduced by 15.9pc a year. BT would not be able to charge other providers more than £98.81 a year for unbundled wholesale access to its telephone lines - a figure which would reduce by 7.3pc a year after April 2013. Ofcom said it expected the ruling to lead to cheaper broadband and landline prices. If the ruling is approved, it will take a bite out of BT's fastest growing division, OpenReach, which grew revenues 5pc in the third quarter thanks to surguing demand for broadband connections. Analysts at Espirito Santo said the news was "a mild negative for BT," because the "glide path is at the low end of the range indicated in Ofcom." However, it presents a boon to other telecoms operators, which will be able to compete more effectively on the prices they charge consumers at the same time as protecting their margins.