MSE News: Clampdown on 'misleading' b'band ads which don't factor in line rent costs
Options
MSE_Luke
Posts: 295 MSE Staff
The Advertising Standards Authority is clamping down on "misleading" broadband ads which don't factor in line rental costs and which "confuse" customers...
Read the full story:
'Clampdown on 'misleading' broadband ads which don't factor in line rental costs'
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
'Clampdown on 'misleading' broadband ads which don't factor in line rental costs'
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
0
Comments
-
the sooner BT's monopoly on whats charged for line rental comes to an end the better.
i am sick to death of seeing line rentals creeping up and up to £18 when the wholesale cost of line rental is less than half that!
on principle i will never use BT direct. i'm not paying for all their silly costs they're charging to rake back the silly prices they paid for champions league matches, Moto GP and pointless adverts with high profile stars in.0 -
BT do not have a monopoly on line rentals though.,
How can broadband suppliers provide a cost that includes the line rental? Line rental does not have to be with the same company that provides broadband so they have no say in the cost.
The ASA should have contracted a survey company that knew what it was talking about.0 -
BT do not have a monopoly on line rentals though.,
How can broadband suppliers provide a cost that includes the line rental? Line rental does not have to be with the same company that provides broadband so they have no say in the cost.
The ASA should have contracted a survey company that knew what it was talking about.
Pretty much it.
IIRC BT have to charge all the companies a rate set by the regulator for line rental.
The companies then decide how much to charge the customer.
BT wholesale has to get paid for the line, as it costs money to maintain it and the equipment, as the cost of keeping the line working doesn't vary much if it's being used for phone, internet or both.
It should be required that any advert states very clearly "Cost + standard line rental" or similar, like the "calls are charged as standard network rate", rather than the current situation where it's usually "try our broadband at only X" followed in smaller type with "when you take our line rental"0 -
BT do not have a monopoly on line rentals though.,
How can broadband suppliers provide a cost that includes the line rental? Line rental does not have to be with the same company that provides broadband so they have no say in the cost.
The ASA should have contracted a survey company that knew what it was talking about.
They can. The broadband provider buys the access to the line at wholesale cost , somewhere in the £9 area I believe, then adds on their own price on top.
All the broadband providers have put up their part of the landline prices to the public this year to claw back the costs of giving the broadband data access at low prices or 'free'.The more I live, the more I learn.
The more I learn, the more I grow.
The more I grow, the more I see.
The more I see, the more I know.
The more I know, the more I see,
How little I know.!!
0 -
How can broadband suppliers provide a cost that includes the line rental? Line rental does not have to be with the same company that provides broadband so they have no say in the cost.
There are two kinds of broadband packages: those where the line remains with Openreach and you can pick different line rental+phone and broadband providers, and those where you have a single provider where the line+phone and broadband come together.
In the first case, the broadband isn't bundled with line rental - you can pick the cheapest phone and broadband providers independently. In that case there's no confusion - you can compare prices of each separately.
The pricing tricks only come in the second case because they advertise 'free broadband, plus your usual line rental* (* line rental £100pm)'. They wouldn't let you take just the free broadband and go elsewhere for the line rental, so the price of the bundle should be advertised together.
It's simple: if they make you buy something, it should be included in the price. If it's optional, it needn't be. It's just like 'taxes and charges' for airlines.0 -
In the first case, the broadband isn't bundled with line rental - you can pick the cheapest phone and broadband providers independently. In that case there's no confusion - you can compare prices of each separately.
You are very unlikely to get the cheapest option by taking separate providers, unless you have a special deal like those given to O2 to Sky converters.
The pricing tricks only come in the second case because they advertise 'free broadband, plus your usual line rental* (* line rental £100pm)'. They wouldn't let you take just the free broadband and go elsewhere for the line rental, so the price of the bundle should be advertised together.
A simple sum to add broadband and line cost. There is absolutely no reason why a company would give you free or very cheap broadband so you can get a line deal elsewhere.
It's simple: if they make you buy something, it should be included in the price. If it's optional, it needn't be. It's just like 'taxes and charges' for airlines.
There are separate broadband only charges, with the few companies who do stand-alone, but they are much higher than prices for taking with line rental.
Comments in blue.0 -
A simple sum to add broadband and line cost. There is absolutely no reason why a company would give you free or very cheap broadband so you can get a line deal elsewhere.
Exactly, but the line cost is often hidden by small print. I often had fun with BT adverts looking for all the tiny footnotes.¹ ² ³
This isn't strictly about getting the cheapest deal, it about understanding what you're paying. Just like a budget flight, maybe a 1p flight plus £100 'taxes and charges' is a good deal, it depends. But it isn't a level playing field if airline A can offers a 1p flight + hidden charges and airline B offers a £100.00 flight all-in - B's is actually cheaper, but you wouldn't tell from the advertising.0 -
I am reminded of the famous advert (something like)
"Free car when you buy this car seat for £10 000".0
This discussion has been closed.
Categories
- All Categories
- 343.3K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 248K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards