These savings will be backdated to 1st August 2001, when the products were first introduced by BT, following an earlier Oftel initiative.
Leased lines are permanently connected communications links between two or more sites. Today's decision relates to partial private circuits (PPCs), the key wholesale components of leased lines, which enable other operators to use BT's network to deliver services to their own customers.
Under the proposals, connection charges for PPCs will be reduced typically by 50%, and rental charges by 30%. Oftel also proposes improvements to BT's service level agreements for the provision of PPCs, including proposals that BT should pay compensation for late delivery.
David Edmonds, Director General of Telecommunications said today:
"The proposals are the result of a detailed investigation of the leased line market which found that BT's wholesale charges for leased line services are too high and that these prices should be reduced to reflect costs.
"Telecoms operators should pass on these significant price reductions to their business customers of leased lines services."
Oftel has invited comments on its proposals which must be received by 8th October. It expects to announce a decision in November, having considered all responses.