The cost of broadband bundles and phone calls is set to rise again after BT Retail announced that the price of UK landline rental would increase by 50p (pence) a month from October 2010, with call charges also expected to jump by an extra 10% (e.g. daytime rate rise from 5.9p to 6.4p). The cost of connecting a call will also be hiked from 9.9p to 10.9p.

The result is that customers must soon pay a line rental fee of up to £13.29, or £12.04 if they receive their bills by e-mail. The BBC reports that BT's move is aimed at getting customers to sign-up with its longer term contracts; those who do will pay lower rates and be shielded from most of the hikes.

In the past such moves have also triggered similar price shifts by rivals, although some ISPs like ICUK have already hinted that they will not be raising their prices to match. Indeed BT's competition, at least for basic line rental, will start to look even better value.