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unfair for broadband providers to force you to get Phone line?

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  • System
    System Posts: 178,365 Community Admin
    10,000 Posts Photogenic Name Dropper
    Actually, you can get broadband at home without paying "line rental" - provided you live in central London. MSE had an article about it recently:
    http://www.moneysavingexpert.com/news/phones/2014/06/an-end-to-line-rental-no-landline-broadband-service-launches

    A standing charge, so that small users pay a higher price per unit, is indeed customary in several industries. Which industries get away with this, is historical accident, not logic, let alone fairness. Fortunately for me (who use my mobile only for emergencies and Pay As I Go about £5 a year), a "masts rental" for mobiles never caught on.

    I guess that Tesco would love to charge you a flat "aisle rental" as soon as you enter the door, irrespective of how much you buy ...

    Personally I think the term "line rental" used in the telecoms industry, though historically well-established, is a bit silly. You aren't really renting anything, and you can't buy the wires outright instead, and maintain them yourself. It's just a standing charge.
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  • Retrogamer
    Retrogamer Posts: 4,218 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    YoungNick wrote: »
    Actually, you can get broadband at home without paying "line rental" - provided you live in central London. MSE had an article about it recently:
    http://www.moneysavingexpert.com/news/phones/2014/06/an-end-to-line-rental-no-landline-broadband-service-launches

    A standing charge, so that small users pay a higher price per unit, is indeed customary in several industries. Which industries get away with this, is historical accident, not logic, let alone fairness. Fortunately for me (who use my mobile only for emergencies and Pay As I Go about £5 a year), a "masts rental" for mobiles never caught on.

    I guess that Tesco would love to charge you a flat "aisle rental" as soon as you enter the door, irrespective of how much you buy ...

    Personally I think the term "line rental" used in the telecoms industry, though historically well-established, is a bit silly. You aren't really renting anything, and you can't buy the wires outright instead, and maintain them yourself. It's just a standing charge.

    From someone who's worked with various communications providers on the technical side for the last 8 years, i would say you're being very naive.

    Most mobile and broadband providers at present operate on little to no profit. Some even operate at a loss. This is due to people wanting things cheaper and cheaper and providers having to reduce prices to remain popular. But then they make little to no profit so you wait longer in calls, speak to overseas call centres, get rubbish service etc.

    That's without going into how terrible Openreach area at present, without reducing the money they receive further.

    Back when mobile phones weren't very popular a PAYG phone was £200ish and £15 top up got you £15 worth of calls for 30 days at about 50p a minute.

    Prices have came down now because there are more people using the technology to spread the costs.

    If everyone went to topping up PAYG phones every 6 months either the network and service would fall apart, or the prices would increase dramatically.
    All your base are belong to us.
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