BT has been told by Ofcom that it must reduce the rates it charges rival communications providers for wholesale use of its broadband and home phone infrastructure.
The regulator has sent proposals to the European Commission that will impose new price controls on Openreach, the telecoms giant's local access network business.
Its provisional new prices will see the annual amount charged by BT for a broadband and landline connection reduced from £91.50 to £87.41, while the fee for a standalone broadband line will drop from £14.70 per year to £11.92.
Ofcom is able to regulate these prices due to the significant market power enjoyed by Openreach in the delivery of these services.
However, while the move is intended to reduce the costs for rival providers such as Sky and TalkTalk, and ultimately also for customers, Geo Networks co-founder and chief executive Chris Smedley argued it could affect investment in fibre optic broadband.
Speaking to BBC News, Mr Smedley claimed the price reduction would make funding for new super-fast broadband infrastructure less sustainable.
"It looks consumer friendly, but if the long-term objective is to move us to fibre you wouldn't do this," he added.