Ofcom wants to reduce the cost of connections provided by Openreach The cost of home telephone and broadband services could come down after telecoms regulator Ofcom moved to reduce the wholesale price. It has revised the list of rates that Openreach, which manages BT's network, can charge other providers for using its services.
In some cases, the wholesale price could fall by more than 10% per year.
The move could benefit companies such as TalkTalk and Sky, but not Virgin Media which uses its own cable network.
Under Ofcom's proposals the prices of two of the ways that BT's rivals get access to its network will come down.
The first, called Local Loop Unbundling, allows telecoms firms to site their equipment in BT exchanges and take over lines to customers.
Ofcom wants the price Openreach charges when an operator takes over these lines completely to drop by between 1.2 and 4.2% every year. Where lines are shared it wants prices to drop by between 11.6 and 14.6% every year. To illustrate the potential numbers affected, Ofcom said there were about 7.6 million unbundled lines in the UK.
The second, called Wholesale Line Rental, involves telecoms firms simply renting lines from Openreach. Ofcom wants the prices of these to drop by between 3.1 and 6.1% every year. There are about 6.14 million WLR lines in the UK.
The price changes are to be applied after taking inflation into account. This might mean that some prices creep upwards if inflation rises.
"Ofcom expects its proposed prices to lead to real term price reductions for consumers, as communications providers pass on savings to their landline and broadband customers," it said in a statement.
In response, BT released a statement which said: "BT invests more than any other company in the UK's communications infrastructure, so it is critical that it is able to achieve a fair rate of return in order to continue its investment in copper and fibre-based services."
It added: "Upon initial review, we are encouraged by Ofcom's recognition of this fact, but would question some of the underlying assumptions being used."
The communications watchdog said its proposals were the start of a consultation process that would end on 9 June. BT said it would raise its concerns with Ofcom during the consultation process.
The conclusions of the consultation will be published in the autumn.
Any price changes that result would come into effect towards the end of 2011 and be in place until March 2014.
But the deal was overshadowed by concerns about Portugal and a growing row that the UK may be forced to contribute to a financial bail-out.
Portugal says it does not need aid, but many analysts say Lisbon is in denial.
The eurozone debt deal follows months of negotiations.
"We decided a comprehensive package of economic measures... Today almost all the strands of this enterprise have come together," European Council President Herman Van Rompuy said.
The new plan provides for the creation of a permanent fund, the European Stability Mechanism, to help troubled eurozone countries.
A major sticking point was the speed with which countries had to pay cash into the 700bn-euro (£615bn) fund. The agreement requires 80bn euros of cash provided by eurozone countries in five equal annual instalments. There will be a further 620bn euros in guarantees.
Originally, eurozone finance ministers agreed to put 40bn euros into the fund immediately it is created in 2013.There had been expectations that the two-day summit in Brussels would agree a resolution over rescuing Portugal's stricken economy.
But Portuguese ministers said they had no intention of following Greece and the Irish Republic in tapping the bail-out fund.
Even so, analysts believe it is only a matter of time before other countries are forced to provide support to the ailing economy.
'Furious' UK Prime Minister David Cameron refused to respond to suggestions that Britain may have to pledge billions of pounds to any emergency funding.
He said: "It's not right to comment and speculate on another country's finances, and I'm not going to do that."
He has faced angry calls from his own Conservative MPs to refuse to contribute British money towards a bail-out.
"Can I remind you that we have just had an austerity Budget?" said former frontbencher Bernard Jenkin in the Commons on Thursday.
"Can you imagine how absolutely furious British voters would be if it turns out that the British taxpayer has to continue contributing to the bail-out of euro countries, even though we are not a member?"
European Commission President Jose Manuel Barroso insisted that member states had not discussed bailing out Portugal.
"We [EU leaders] expressed confidence in the capacity of Portugal to overcome the current situation and also to find the funding the country needs in the months to come."
The financial markets are also worried as Portugal must repay a large chunk of debt to lenders in April.
On Friday, Standard & Poor's downgraded Portugal's credit ratings by two notches to BBB and warned it could cut it further.
S&P followed a two-notch cut by Fitch on Thursday.