If British Telecom (BT) own the phone lines, how can other Internet companies provide cheaper rates when they need to rent the line from BT? Location: UK

Question

If British Telecom (BT) own the phone lines, how can other Internet companies provide cheaper rates when they need to rent the line from BT? Location: UK

In: Other

Answer 1

Companies can ‘rent’ lines from BT at bulk and/or wholesale prices. Also, regulatory bodies tend to prevent a monopoly.

It’s like buying a hammer. One might cost $9.99. A box of 200 might cost $3.99 ea, which then you could sell at $9.99 ea.