LONDON, June 12 (Reuters) - Britain's telecoms regulatorOfcom proposed controlling the prices BT can charge forsome of its high-speed business lines, following up on a reviewwhich recognised the former state monopoly's "significant"market power.
Ofcom said it was opening a consultation on the level ofthose price controls which would apply to some of BT's wholesaleleased line prices, and result in price cuts for customers inthe 2 billion pound ($3.10 billion) market.
Amongst the business customers using the leased lines areconsumer mobile and broadband operators as well as companies,schools, universities and libraries.
"Ofcom is proposing a form of charge control that aims tobring prices down to costs over a three-year period. This typeof control, which is linked to inflation based on the consumerprice index, provides an incentive for BT to make efficiencygains," the regulator said in a statement on Friday.
Ofcom said the consultation would close at the end of Julyand it expected to publish its decision in the first quarter ofnext year.
The consultation is also considering how to price theopening up of BT's network to other operators, a move which ithopes will improve competition in the high-speed data linkmarket.
Broadband companies TalkTalk, Sky,business telecoms providers COLT and GTC, and mobileoperators Vodafone, 3 and EE , said last year they wanted business lines opened up.($1 = 0.6454 pounds) (Reporting by Sarah Young. Editing by Jane Merriman)