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Bulldog/Pipex/Cable & Wireless - Problems

Options
About a year ago my Uncle switched from BT to Bulldog because he wanted Broadband and Bulldog were offering a good deal at the time. After some initial problems of the telephone engineer swapping something in the telephone exchange causing his phone number to be swapped with something else, everything went smoothly.
Then around 6 months ago, he recieved a letter stating that things were being transferred from Bulldog to Pipex. This didn't cause a problem - internet and telephone were still working fine.
Then a few months ago, he recieved a letter stating that things were being tranferred to Cable & Wireless. Again, no problems initially.
Then on the 2nd August, he recieved another letter, this time from Cable & Wireless stating that they were no longer continuing in the private communications market and as from the 2nd September, they will terminate their contract with him, stating a clause in the contract that allows either party to cancel.
Now my Uncle (who is 67) is left without a home telephone and internet services. We have contacted BT, who want £124.99 to reconnect the phoneline at the telephone exhange outside of the building. Bulldog are still offering phone and internet package on their website and because he no longer has a BT line (because they swapped it over a year ago), they want £99 to reconnect the line even though they passed on his contract to Pipex.
He can't have Virgin Media because he's not in a cabled area (he's on the top floor of a 6 storey building).
He was going to go with Talk Talk but he doesn't have a BT line already installed. If he wanted to go to Talk Talk, he would have to pay BT £124.99 to reconnect the line and then cancel to swap over which defeats the point really.
So he is stuck in a weird situation. He seems to have 2 options:-
1. Go back to Bulldog for £99, who will probably pass on his contract to someone else again and therefore he may be in the same situation in a years time.
2. Go back to BT and pay £124.99.

He signed up to Bulldog in good faith and due to things happening, he now has to pay a hefty fee to someone to get the line reconnected.
Does anyone know of an alternative method to get a phoneline installed that will be cheaper than the above options?
Also, has anyone else experienced the same problems?

Thanks

Carl
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