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MSE News: BT to cut landline costs for up to one million customers...

Former_MSE_Megan_F
Former_MSE_Megan_F Posts: 418 Forumite
Newshound!
edited 26 October 2017 at 10:56AM in Phones & TV
Almost a million landline-only BT customers will see their bills cut by £84 a year following pressure from Ofcom...
Read the full story:
'BT to cut landline costs for up to one million customers following Ofcom review'
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  • Caddyman
    Caddyman Posts: 342 Forumite
    Tenth Anniversary 100 Posts Combo Breaker
    That's nice for them that get it, but what about us who don't use the landline to make any calls whatsoever? Ok, that's my choice not to use the line for calls, but in order to get fibre broadband, I have no choice, I have to have a telephone line. The fact I don't use the landline for calls is because I use my mobile, mostly messaging apps. I haven't made a single call on the home landline since 2006, I don't even have a telephone plugged into the socket. One bonus, I never, ever get scam calls!

    I don't mind paying line rental, but I don't see why I should pay full price for it. BT know I don't make a single call on the line, my itemised bill proves that, zero calls every single month. Similarly when I was with Plusnet, I never used the line for calls then.

    The trouble is, I already know the answer. There are plenty of people like me these days that hardly ever use a landline for calls. If BT suddenly gave everyone like me who can prove they don't use their landline for calls, a discount, they'd be massively out of pocket I suspect. Sadly, for many people, the only way line rental is going, is up.
  • BT Wholesale refer to the line to your house as a "metallic path facility" - that's what you're paying line rental for, not for an internet service or for voice calls (which are individually chargeable if there is no calling package in place). The MPF is (by default) enabled for voice traffic, but the cost of the calls is not included in the line rental price, so there is no possibility of a discount if you don't use it for calls - you aren't saving them any money by not using it.

    The wholesale cost of line rental to the provider is £8.67 / month, so BT retail will be making £3.32/month over wholesale.
    Proud member of the wokerati, though I don't eat tofu.Home is where my books are.Solar PV 5.2kWp system, SE facing, >1% shading, installed March 2019.Mortgage free July 2023
  • Caddyman
    Caddyman Posts: 342 Forumite
    Tenth Anniversary 100 Posts Combo Breaker
    .....The wholesale cost of line rental to the provider is £8.67 / month, so BT retail will be making £3.32/month over wholesale.

    Thanks for the explanation, I was already aware of the facts, though clearly others might not be. But my point is, whilst I'm assuming BT Openreach charge BT Retail and other providers £8.67 a month, I'm sure my own line rental works out at nearly £20 a month and then fibre is obviously extra on top. So BT Retail must be making over a 100 percent profit? or is that a totally incorrect assumption by me?

    If my assumption is correct, because I don't use the landline for calls, irrespective of whether or not I'm saving BT Retail money by me not using it, then they're making a lot of profit just by the fact they are charging a hideous line rental fee. If I'm wrong in my assumption, I'm more than happy to stand corrected.....
  • worried_jim
    worried_jim Posts: 11,631 Forumite
    10,000 Posts Combo Breaker
    Caddyman wrote: »
    That's nice for them that get it, but what about us who don't use the landline to make any calls whatsoever? Ok, that's my choice not to use the line for calls, but in order to get fibre broadband, I have no choice, I have to have a telephone line. The fact I don't use the landline for calls is because I use my mobile, mostly messaging apps. I haven't made a single call on the home landline since 2006, I don't even have a telephone plugged into the socket. One bonus, I never, ever get scam calls!

    I don't mind paying line rental, but I don't see why I should pay full price for it. BT know I don't make a single call on the line, my itemised bill proves that, zero calls every single month. Similarly when I was with Plusnet, I never used the line for calls then.

    The trouble is, I already know the answer. There are plenty of people like me these days that hardly ever use a landline for calls. If BT suddenly gave everyone like me who can prove they don't use their landline for calls, a discount, they'd be massively out of pocket I suspect. Sadly, for many people, the only way line rental is going, is up.

    I went B.B. only a year ago- easy for me as I’m with VM but I agree the bliss from never receiving a ppi call again has been a joy. Uninterrupted evenings and weekends bliss. I would urge everyone who can to ditch their landline for a happier life. Strangely enough since doing so my communication has never been better and most is now done face to face by video call via messenger and the like.

    Landlines are dying out and once 5G is rolled out all cables to homes are done for and everything will eventually become wireless.
  • Caddyman
    Caddyman Posts: 342 Forumite
    Tenth Anniversary 100 Posts Combo Breaker
    I went B.B. only a year ago- easy for me as I’m with VM but I agree the bliss from never receiving a ppi call again has been a joy. Uninterrupted evenings and weekends bliss. I would urge everyone who can to ditch their landline for a happier life. Strangely enough since doing so my communication has never been better and most is now done face to face by video call via messenger and the like.

    Landlines are dying out and once 5G is rolled out all cables to homes are done for and everything will eventually become wireless.

    At last, a kindred spirit lol! Someone like me who truly believes the days of the landline are truly numbered.

    I agree totally about having uninteruppted evenings and weekends. Even back in 2006 when I was still using a landline, I rarely used to answer the phone anyway because even back then, and I'm sure it was worse back then, scammers were always calling, so I just let it go to answerphone. The problem with so many people is, they have this insane burning desire to answer the telephone every single time it rings because the call 'might be important'. Well yes, for the vulnerable/elderly etc, I do understand, but by and large, for many, they could just ignore it and let the call ring out or go to answerphone. People that constantly wind themselves up and get utterly depressed by taking every single call that comes into their house, would undoubtedly be better off just ignoring it. I do this frequently anyway on my mobile phone. If a number comes up that I don't recognise, or it is displayed 'Blocked' or 'No caller id', I just don't answer it. They never, ever leave a message or text message. Why answer it in the first place?

    One of my biggest bugbears, is why BT Retail continue to push out private customer telephone directories. They could undoubtedly save a huge amount of money by binning these. I haven't used a Residential telephone directory in years. I refuse to have my name listed, I don't want one and I've asked not to receive one, but still, every single year, someone shoves the worthless piece of toilet paper through my letter box and it goes straight into the recycling bin. Really, apart from scammers, does anyone actually every use a Residential telephone directory these days?
  • worried_jim
    worried_jim Posts: 11,631 Forumite
    10,000 Posts Combo Breaker
    I was unlisted and used to get plagued by scam calls, I know where they got my number, I mistakenly put it on an insurance comparison quote from compare the market and the floodgates opened.

    When I read about all the scams going around whereby you are contacted by phone I smile knowing that this won’t happen to me. Now.
  • Caddyman
    Caddyman Posts: 342 Forumite
    Tenth Anniversary 100 Posts Combo Breaker
    I was unlisted and used to get plagued by scam calls, I know where they got my number, I mistakenly put it on an insurance comparison quote from compare the market and the floodgates opened.

    When I read about all the scams going around whereby you are contacted by phone I smile knowing that this won’t happen to me. Now.

    Whenever I use price comparison sites these days, when a telephone number is required, I just put in 07(then 3 random numbers) and then complete the rest of the number with zero's. Works every time and I never get bothered by people calling me up. We have digressed slightly, but most people seem to get scam calls on landlines and mobile phones because scammers use random call generators, not because they have any idea of the name of the person they are calling.
  • littleboo
    littleboo Posts: 1,772 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    BT Wholesale refer to the line to your house as a "metallic path facility" - that's what you're paying line rental for, not for an internet service or for voice calls (which are individually chargeable if there is no calling package in place). The MPF is (by default) enabled for voice traffic, but the cost of the calls is not included in the line rental price, so there is no possibility of a discount if you don't use it for calls - you aren't saving them any money by not using it.

    The wholesale cost of line rental to the provider is £8.67 / month, so BT retail will be making £3.32/month over wholesale.

    If BT Retail will charge £11.99, that's £10+ VAT, so the margin is £1.33
  • littleboo wrote: »
    If BT Retail will charge £11.99, that's £10+ VAT, so the margin is £1.33
    For clarity, since the OFCOM announcement talked about a consumer price which is therefore VAT inclusive, I also gave the VAT inclusive price of wholesale line rental.

    The VAT exclusive price is £87.62/year (£7.23/month)
    Proud member of the wokerati, though I don't eat tofu.Home is where my books are.Solar PV 5.2kWp system, SE facing, >1% shading, installed March 2019.Mortgage free July 2023
  • Caddyman wrote: »
    Thanks for the explanation, I was already aware of the facts, though clearly others might not be. But my point is, whilst I'm assuming BT Openreach charge BT Retail and other providers £8.67 a month, I'm sure my own line rental works out at nearly £20 a month and then fibre is obviously extra on top. So BT Retail must be making over a 100 percent profit? or is that a totally incorrect assumption by me?
    .
    If you are getting your voice and Internet from the same company, then they now quote the price inclusive of both, rather than "Internet £2/month!! (by the way line rental is required at £25/month)". The real split behind the scenes is inevitably different - I recall one ISP declaring their broadband was "free" with line rental, but it was only because the amount nominally charged for "line rental" was used to fund both.

    You can avail yourself of this discount by moving your broadband to someone else and keeping your voice service with BT retail. I have mine this way so expect to see my line rental reduce.
    Proud member of the wokerati, though I don't eat tofu.Home is where my books are.Solar PV 5.2kWp system, SE facing, >1% shading, installed March 2019.Mortgage free July 2023
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