(08-02-08) - Prices are increasing for line rental charges. For many customers, the cost of calls placed during the day and the evening are also going up.
Last Friday BT (www.BT.com) announced price increases for UK home phone services. Prices are increasing for line rental charges and the cost of calling in the evening. BT executives are now working hard to minimize the backlash from customers and the media.
Line rental increasing
Line rental charges will now increase 75p to £11.75 for people who receive their bills in the post. Customers who review bills via email and pay by direct debit will no be impacted by the new pricing structures, set to begin in April. Customers who do not pay with direct debit will continue to suffer, paying an additional £4.50 per quarter to pay by cheque.
BT surprised customers last July by rising prices and customers were concerned the hikes would make the service unaffordable in some instances. It seems the bad news continues in February ‘08. Some price analysts estimate the hike in prices will net the company £80million.
What does this mean for customers?
BT Option 1 and 2 customers will see daytime and evening call charges increase markedly. The price of daytime calls will rise from 3.25p a minute to 4p a minute. For example a 30 minute call placed during the day under the last pricing plan would cost 97.5p. Now, with the new rate the same call will cost customers £1.20, a rise of 22.5p.
Evening calls for Option 1 customers will rise to 1.5p per minute for evening calls. The new pricing scheme jumps the rate for an hour long call to a staggering 90p per hour as compared to 4.5p per hour.
To offset the pain of the increases, BT is offering Option 1 customers free weekend calls for the first time and Option 2 and 3 customers will see monthly subscription rates cut up to 25% in some cases.
Gavin Patterson, BT group managing director said: “These are radical changes that will benefit millions of our customers - and they don’t need to do a thing. Millions of people will see the price of their call plans fall whilst millions more will enjoy free weekend calls for the very first time.”
What now?
Chris Eagle, Commercial Manager of HomePhoneChoices.co.uk said “Customers should think carefully before signing up to contract extensions, if contacted by BT directly.
He continues “Even though some changes seem subtle, BT’s Option 1, 2 and 3 customers may face a substantial rise in charges for day and evening calls. There are cheaper options for line rental and other cheaper unlimited call packages available.”
By comparing home phone packages customers can find competitive prices for line rental and services. Orange (www.orange.co.uk), Talk Talk (www.talktalk.co.uk) and Your Calls.net (www.yourcalls.net) may offer cheaper line rental deals. Compare prices at www.homephonechoices.co.uk. (www.homechoices.co.uk)
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