Oftel has ordered the cuts after saying that BT was charging operators for costs that are no longer necessary. The 17% reduction will be backdated to June 2002.
The telecoms regulator, which is soon to become part of Ofcom, said it hoped internet operators would pass savings on to their customers, although industry analysts were doubtful as the big ISPs -- including Freeserve and AOL -- try to push customers away from dial-up access to broadband.
Freeserve said that it was waiting to see if the operators planned to pass on the savings, while Energis said it would be reviewing costs on an individual basis.
Rival ISP AOL UK said that the savings would only amount to a small reduction for users each month, and that if the savings were passed on it would channel them into improving content.
David Edmonds, Oftel director general of telecommunications, said: "The action taken today ensures that BT continues to recoup the cost of providing wholesale unmetered internet access, and that UK consumers continue to benefit from one of the most competitive dial-up internet markets in the world."
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