BT has expressed disappointment regarding the small increase in prices that Ofcom sets for its wholesale arm Openreach. BT can now charge £86.40 for each unbundled line, which is much lower than what it had been expecting. Moreover, if any of the other broadband providers share a line with BT, then all that the company can charge is £15.60, which is the same price as last year.

According to a news item on The Register, BT had expected Ofcom to hike the prices to somewhere between £85 and £91 as per an understanding between the two. It seems that Ofcom opted to stay at the lower end of that range, which is what BT is complaining about.

BT had hoped for a higher increase in price and it believes that such a minor hike will only lead to continuing losses at Openreach. While Ofcom claims that Openreach will still be able to make profits, BT disagrees.

Ofcom says that a lower hike will keep the market competitive and draw in more broadband customers. However, BT says that Ofcom’s halfhearted efforts at balancing the market are clearly insufficient. The current step will not even allow Openreach to recover its costs. The latest prices will stay in effect for one whole year and can now be revised only after May 2010.