MILLIONS of people are set to get cheaper internet access – after BT was told to slash its wholesale charges to rural areas.

UK telecoms regulator Ofcom has instructed BT to cut annual prices by 12% below inflation for the next three years for firms that use its network to supply remote rural locations.

Ofcom said that up to 3m homes and businesses will benefit from the reduction – especially those in the remote parts of Scotland, Wales, Northern Ireland, the South West, Yorkshire, Northumberland and Cumbria.

The reduction does not include connection, which reduces the effective price cut to about 11%.

Higher costs of delivery mean customers in remote areas pay more than those in the cities and towns.

But the regulator wants the price cut to encourage both internet providers and BT to invest more in upgrading their systems.