Cost of using BT (possibly other providers) could rise!

bbb_uk

gt94sss2 wrote:

Trust me, Oftel/Ofcom were not suprised when BT make changes to its line rental. BT spend ages discussing these sorts of changes with them before they get formally notify them.

Ofcom knew about the .50p increase but were surprised (to a certain degree) when BT removed the standard plan and migrated everyone to Option1 as I remember CPS providers weren't happy when this happened and complained and Ofcom investigated because they said initially they werent aware of it. If I remember correctly, it turns out that BT had briefly mentioned it in a unrelated meeting with Ofcom but ofcom had forgotten/or didn't make notes accurately.

If BT made its promises public, it competitors would know what they were.. which I imagine is the problem.

I can't see what difference that makes because when BT increase their prices, the other competitors just follow them but obviously a little later because they weren't aware of BT price increase until its announced. As I said, linerental increase is a perfect example that the rest just follow suite. Same thing applies to other increases, etc BT have done.

Also, its important to notice that this consultation would only affect the retail prices that BT charges - not its wholesale prices which continue to be regulated regardless and if BT raise its retail prices "to much", someone will just come in and undercut them. (much like some companies (CPS, WLR, LLU etc) are doing now but the incentive to switch would be much greater.

That is basically what Ofcom are hoping but again there is no evidence of this happening. TW/NTL, TalkTalk (the biggest competitors to BT although not really nowhere near as big as BT) all have just followed suite and increased their prices inline with BT's especially with regards to linerental. Out of these biggest competitors, only TalkTalk remain ever so slightly cheaper on their call charges (whereas TW/NTL charge the same as BT).

When BT changed messed with their offpeak/peak times, the rest followed. Same thing with linerental and possibly other things as well. BT may keep their geo call charges the same so as to try and remain competitive but I believe BT will want to increase their linerental again, and minimim call charges and other things. Remember, BT know that those on Option 1 are using CPS providers, etc and this is why they went specifically after Option 1 users with their recent linerental increase. Giving BT unrestricted control of their linerental increase could easily mean that BT will increase their prices knowing full well that we have no choice but to stay with them because most people using WLR/CPS generally use CPS rather than WLR as well. Not that that much difference because linerental increase is followed by their main competitors anyhow.

Note: I am not saying that retail price controls should not continue - in fact, oddly, I believe that in may cases the fact that BT has been forced to cut prices in the past has actually benefitted it and there are other regulatory changes I would like to see as well such as making all telco's fund the USO etc - justthat your original post seemed a bit OTT to me

I agree I was OTT but Ofcom's preferred option is to allow BT nearly full control of prices with some "confidential" assurances. I (and all other consumers) have no idea what these "confidential" assurances are. They could be no price increase higher than £3 for linerental, or £1. The point is we don't know but Ofcom would like us to choose this option. Plus, this option meant only assurances were given from BT, Ofcom admit that they don't have to keep to these assurances and if this is the case then it would need to be looked at again at the next renewal of its regulatory controls. By this time consumer detriment may have increased.

It's all based on "Ifs" to me and no facts whatsoever and even Ofcom admit this in their consultation but Ofcom would still prefer option 4 with hardly any regultary controls.