BT to Increase Line Rental Later in the Financial Year.

pricefighter

Hidden away in a longish press release BT have announced a forthcoming price increase to line rental, to read it visit http://www.btplc.com/news/index.cfm and look under 23/6/05 (BT commits to suport new era of regulation).

Basically what they are going to do is to cut the monthly line rental price they charge other WLR operator eg Onetel. by 50p a month per line on the 1/8/05 inc vat.They are then going to raise the amount there retail arm charges for line rental per month ,by 50p a month inc vat.This increase will take place sometime in this financial year.

If the other WLR operators pass the decrease on to the consumer it will obviously make these alternative line rental deals a little more attractive.

Ignite

Reading the press release, how I read it is that as part of the deal that BT has had forced on them is that BT Retail is not allowed to have any better deals than a 3rd party company. Therefore, at the moment, BT Retail is paying £1 per line less for line rental. So they are reducing the cost for 3rd party companies and raising it for BT retail. Not raising it for customers. It is all to do with the wholesale price.

Andy

pricefighter

BT Retail are the people that send out the phone bills to Joe Public.The release says that they are(thats BT Retail), going to increase the price of line rental by 50p incl vat a month later this financial year.

Ignite

You are right with the exact wording they have used, but I would guess that it is more likely that it is the price that the wholesale division charges the retail that will change and that they are going to be less likely to pass this onto the subscribers given the customer backlash that will come from more price rises. The other companies will have a field day. Talktalk are going to be offering line rental from the 15th July (I think) and this will cost £9.99 per month. (I was told this earlier today while talking to TalkTalk customer services).

pricefighter

I hardly think that there will be backlash for a 50p a month increase by BT.They have already technically increased there prices 3 times this year. Onetel,Telecom Plus and the Post Office are already offering slightly cheaper line rental and there aint exactly an exodus of BT Customers grabbing it.

Perhaps if the WLR passed on the decrease then things might pick up.

BexTech

The reason why I haven't switched line rental, is simply only BT allows access to indirect carriers like 18866 and 1899, I don't see the point in saving 50p when that saving gets wiped out by no longer using 18866 / 1899.

OneTel will even kick you off if they catch you using the 0808 access number when you find 1899 / 18866 blocked.

bbb_uk

I have just sent an email to BT asking for confirmation of this. I shall post here their reply but to me it does sound as though they are increasing the line rental for us ordinary customers. It looks like they've been told (by OfCOM) to increase the gap between what WLR companies would charge us line rental and what BT charge us. They've then decided to opt for decreasing WLR by 50p and increasing ours by 50p making it a £1 difference.

Update - 20th August:

For those reading this thread a few months after the original posting may like to know the actual BT press-release mentioned by the OP can be found here.

NigeWick

BexTech wrote:

The reason why I haven't switched line rental, is simply only BT allows access to indirect carriers like 18866 and 1899, I don't see the point in saving 50p when that saving gets wiped out by no longer using 18866 / 1899

Incorrect. I'm with Telecom Plus and I've just tested it as I use 1899 for other than my free calls.

Nigel.

April2

NigeWick wrote:

Incorrect. I'm with Telecom Plus and I've just tested it as I use 1899 for other than my free calls.

Nigel.

I think Edinburghlass sums it up so well HERE.

pricefighter

NigeWick wrote:

Incorrect. I'm with Telecom Plus and I've just tested it as I use 1899 for other than my free calls.

Nigel.

Edinburgh Glass makes a very valid point, In the long run surely alternative line rental providers will bar access to IA codes to stop loss of revenue.

Funny enough though TP dont seem to mind if you use them at the moment.In there CPS T&C they say Sect 3k.(Once CPS has been provisioned on your phone,then all calls from that number will benefit from our low call charges(UNLESS YOU CHOOSE TO ROUTE THEM TO ANOTHER SERVICE PROVIDER BY USING THE APPROPRIATE PREFIX).

bbb_uk

Received a reply from BT regarding clarification that they are increasing the line rental.

Thank you for your e-mail dated 25/6/05 regarding possible Line Rental increase.

As per your query, I would like to inform you that the charges are to be in effect from 1st august 2005 as per as the press release is concerned and these dates are liable to change. Moreover, you will be informed of the proceedings when it comes in to effect. You will receive these updates with your bill. So, please keep an eye on your bill and read the updates everytime you receive these bills.

I do think the likes of OneTel, etc will pass on the line rental decrease to anyone with their line rental because it makes a slightly stronger selling point. Right now saying that you only save .51p per month is nothing.

I personally don't plan on transferring over (not yet anyhow) as you are likely to be tied to another minimum term (OneTel's is 3months apparantly) and during this time they could easily stop/block the use of Indirect Access numbers (inc 0808 if they wanted). Furthermore, these new providers that have access numbers beginning 0844 (eg AbroadTel) and state x pence per minute - I know whilst on BT the price quoted will be correct but the likes of OneTel/TalkTalk can charge more if they wish assuming they actually carry the call in the first place.

Using just CPS providers and not using them for line rental means I'm not tied to any minimum term and therefore any problems I can easily move to another provider (and they're are loads at the moment).