BT To Raise Line Rental By 50p
Posted: 16th Dec, 2005 By: MarkJ
BT will increase the line rental charge for all its standard 'BT Together Option 1' customers by 50p per month from January 2006. The move agreed with Ofcom is aimed at boosting competition by allowing rivals more space to alter pricing:
Ofcom believes that, to compete effectively, telecoms companies need a clear margin between the wholesale price they pay to rent a telephone line from BT and the price BT charges their retail customers for line rental.
Therefore, to further stimulate competition in the market and as part of the regulatory settlement agreed with Ofcom, BT has been promoting investment in WLR by reducing the price for WLR operators from £9.24 to £8.74 per month (this became effective 1 Aug). Ofcom has also published proposals to introduce further price reductions.
Also to increase this margin for WLR operators, BT announced that it would increase the line rental charged by its retail arm. From 1 January 2006, the line rental for BT Together Option 1 customers will increase by 50p, from £10.50 to £11.00 a month.
For other packages, such as BT Together Options 2 and 3, the line rental remains unchanged. BT customers will be notified in writing with their next telephone bill.
It's hardly going to break the bank of most consumers, although a little more warning might have been appreciated by some.
Ofcom believes that, to compete effectively, telecoms companies need a clear margin between the wholesale price they pay to rent a telephone line from BT and the price BT charges their retail customers for line rental.
Therefore, to further stimulate competition in the market and as part of the regulatory settlement agreed with Ofcom, BT has been promoting investment in WLR by reducing the price for WLR operators from £9.24 to £8.74 per month (this became effective 1 Aug). Ofcom has also published proposals to introduce further price reductions.
Also to increase this margin for WLR operators, BT announced that it would increase the line rental charged by its retail arm. From 1 January 2006, the line rental for BT Together Option 1 customers will increase by 50p, from £10.50 to £11.00 a month.
For other packages, such as BT Together Options 2 and 3, the line rental remains unchanged. BT customers will be notified in writing with their next telephone bill.
It's hardly going to break the bank of most consumers, although a little more warning might have been appreciated by some.
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