MSE News: TalkTalk announces price hikes

Binkythedoormat

I joined talktalk for phone (inc line rental) and broadband about a week ago. The price I've signed up for is £12.60 line rental + £3.25 broadband for the first six months then £6.50 broadband for the next six months. Today I've received an email from talktalk saying my line rental will go up to £13.80 as of 1 October. Can they do this if I've signed up to a contract at £12.60? I see the really small print on their website does say prices are subject to change, but doesn't that somewhat defeat the object of signing up to a contract? What's the point of a contract if not to fix the price for the duration of said contract? Surely they must be contravening contract law somehow with that?

Paul_Varjak

If you are still within the cancellation period (7 days) you can cancel, sign up again and get half price for 12 months! (I just did that). Also, on 1st October you can pay 1 year line rental in advance (£114). That equates to £9.50p/month. You can do that on-line from 1st October.

New customers can sign up via Quidco over the next two days and get back £65 as well!

So, those taking out the Essentials package over 12 months, paying their line rental one year in advance and getting Quidco cashback get service (including broadband and unlimited free UK landline calls) for just £11.84p/month! That is a real bargain!

TalkTalk

HI Alex,

The Value line rental offer doesn't denote any affect to promotions on packages, however any promotions relevant to line rental would be lost, as the advance payment bypasses the ability to apply any discount (half price £0.00 is still £0.00) during the 12 months for which line rental is prepaid. However there are no terms relevant to package discounts.

Binky - It is the case that the Terms and Conditions do advise process may be subject to change and where applicable there is relevant process should you choose to query this, again defined in the terms and conditions.

Regards

Mark

grizzly1911

TalkTalk_Company_Representative wrote: »

HI Alex,


Binky - It is the case that the Terms and Conditions do advise process may be subject to change and where applicable there is relevant process should you choose to query this, again defined in the terms and conditions.

Regards

Mark

Mark,

I accept the company reason for the increase in line rental is "wholesale price",

But just what are TT buying at wholesale prices?

What is it they are buying and from whom?

Is it the cost of a "license"? Do they really only buy these 5 months in advance, bearing in mind the hike last May?

If it is the license cost going up surely this is only a small portion of the line rental cost as this must cover overheads and Profit too?

It seems a mighty big uplift 10% (20% annualised based on increase 5 months ago)) for a "virtual" commodity?

Monkeeboy

I have just received my email today of TT price increase on 1 October - surely I should be given more notice than this? Any views?

Workingtonian

I have in writing an 'order' from TalkTalk dated March 2011. Under the heading 'Your order details' there are two sub-paragraphs:
Monthly charges: which includes the words 'You line rental is £12.30'
Contract: 12 months

However they are trying to charge me a line rental of £12.60 from May and threaten to increase it to £13.80 from October. When I email to complain and point out that it is a two-way 12 months CONTRACT and they therefore cannot increase the line rental during the contract period, they simply ignore my words and insist they will charge me the increases or offer something called Value Line Rental.
Have I got grounds to take my complaint to OFCOM or can anyone suggest how I can best proceed?
Thanks

Tom Pepper

stickgal

I am within contract on TT, and I have basic BBand (2mb speed, 10 meg DL I think), line rental, and a 'global anytime' addition allowing me up to 60mins per call all day to geographical numbers. (24/7 calls)

I pay
£12.60 line rental
£11.82 global anytime

With the increase, this would be
£13.80 line rental
£11.82 global anytime

Today I telephoned TT retentions team (see earlier post for number) with a view of cancelling my contract under the 'material detriment' clause in their T&Cs & to request my MAC code. The first customer service clerk informed me that I would incur a cancellation charge on my account as I was within my 12 month contract (3 months left). I argued that as this was a two-way contract, that the T&C's state that I can cancel within 10days of being informed of a price hike without cancelation penalty. She said I was to be put through to the billing dept, but I said I had connected to the retentions team as directed by TT themselves. She hung up!

So, I tried again. This time around I asked for the clerks full name. Initially, I was of course offered the usual 'so many months half price if I reniewed my contract' which I expected.

1. She intially offered: 6 months half price line rental on a new 12 month contract. I refused, stating that 'Material Detriment' means that I would not be able to pay the bill when the half price offer expired.
2. Then offered: 12 months half price line rental for a 24 month contract. I thanked her very much but just repeated the same argument.
3. Next, I was offered £5 off line rental for 12 months on a 12 month contract. I ummed and ahhed.
4. she came back with the option of the Value Line Rental in October for £114 upfront payment.
I argued that I could not find any information on the TT website about exactly what the VLR included. Was it just a basics package, or could I put call plans on? Did it include BBand, and if not, how much would I pay?
Yes, allegedly the BBand (basic?) is free with a line rental (?) and the VLR can include a call plan.
At this point I was furiously trying to work out my math while on the phone...
5. I was then offered £6.50 discount on global anytime (not the line rental) if I renewed. Taking the 24/7 calls down to £5.32.... Hmmm....
So, if I accept and change to VLR in october my payments should be:
Annually
£114.00 line rental upfront £63.84 24/7 calls £0.00 BBand
Average Monthly cost
£9.50 line rental £5.32 24/7 calls £0.00 BBand

I figured that Ive undercut TT's new increase of my basic package of £307.44 a year to £177.84. A reduction of £129.60.
Or to put it another way, the increased line rental alone is £13.30, and Im paying an average of £14.82: making my call package of 24/7 calls & internet at £1.02 pence per month and this is a 12 month contract.

Im still not sure if Ive got this right, so I called a third time to the customer services number to check this was all correct. I was told yup! :T

I fell a bit bamboozlled by it all Im still unsure if the £5 off line rental would have been a better option, but i do still have a 7 day cooling off period I think. But I cant seem to find coverage and a similar package cheaper. Even by price comparison websites, Plusnet are £11.99 L/r & £6.74 for all day calls.
Any math wizards out there

The absolute icing would be for TT to promote the October value line rental with some lovely cashback via a site!

jrrowleyws

TalkTalk_Company_Representative wrote: »

In regards to the price increases these are as a reflection of wholesale increases in line rental.

How exactly can TalkTalk afford to have a cheaper line rental package if you pay up front then? Surely would be making a bigger loss than if the line rental remained at £12.60??!!

Not best impressed being 2 months into a 12 month contract...

Workingtonian

I admire stickgal's determination in haggling with Talktalk but seemingly whatever you 'agree' with them today on a 12 months contract won't stop them coming along during the contract period and increasing part or all of the package you have spent time and effort negotiating.
My dictionary defines a contract as 'to enter into an agreement with a company to deliver goods or services on mutually agreed and BINDING terms' In my case it's not 'binding' Talktalk to stick with the line rental charge in my contract.
Can someone please explain why Talktalk can apparently ignore this and hike rental charges when it suits them - the fact that they may have to pay more to BT cannot surely allow them to apparently break a contract. Or am I missing something in the fine print somewhere in the T&C's stickgal talks about? And I would still like to know if it's worth taking this as a complaint to Ofcom.
Hope someone can help.

Paul_Varjak

stickgal wrote: »

I fell a bit bamboozlled by it all Im still unsure if the £5 off line rental would have been a better option, but i do still have a 7 day cooling off period I think. But I cant seem to find coverage and a similar package cheaper. Even by price comparison websites, Plusnet are £11.99 L/r & £6.74 for all day calls.
Any math wizards out there

The absolute icing would be for TT to promote the October value line rental with some lovely cashback via a site!

You definitely went for the right option - a discount on the call package (Global Anytime in your case). If you had gone for a discount of £5/month on line rental you could not then have saved a further £5.30/month by taking up VLR on 1st October.

As you are an existing customer, the chances of getting cash-back via a cash-back site is pretty remote!