15 December 2005
BT line rental increases
BT is set to be this Christmas' telecoms scrooge as it introduces its second line rental increase in two months.
The line rental charge has risen from £10.50 to £11 per month, with UK customers set to pay an additional £83 million per year from January 1st 2006.
The line rental price increase applies to the 13.8 million BT customers who use 'Together Option 1', including the 3.7 million customers who use alternative suppliers for their calls but who continue to pay line rental to BT.
The announcement came as Ofcom commented that BT's Wholesale Line Rental (WLR) product, the system by which the telecoms giant rents out line space to rival telcos, finally "meets a series of agreed product criteria".
The price of WLR fell earlier this year from £9.24 to £8.74, meaning that competitors will be able to offer better value line rental to their customers.
"[This] will mean greater competition in the calls and line rental market, expanding consumer choice and increasing value for consumers as more providers compete for their custom," an Ofcom spokesman said today.
Jon Miller, director at independent comparison and switching service uSwitch.com commented: "This is a real blow for BT's customers.
"With most of their competitors reducing their line rental costs, BT customers can feel justifiably aggrieved at having to pay extra while seemingly receiving nothing in return."
He added: "There are now an increasing number of providers in this market, offering alternative line rental to BT, such as household-names like Homecall, Onetel, the Post Office and TalkTalk.
"Customers can now shop around for savings on line rental as well as calls."
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