Your forum username:
Do you already have an account?
Forgot your password?
  • Log in or Sign up


    Welcome to Sky User - The Unofficial Support Forum for everything Sky! - Proudly helping over 65k members.


    Advertisement

    Results 1 to 8 of 8
    Like Tree1Likes
    • 1 Post By lettice

    Ofcom Forces BT to Cut UK Standalone Line Rental Costs by “at least” £5

    This is a discussion on Ofcom Forces BT to Cut UK Standalone Line Rental Costs by “at least” £5 within the General Computing and Internet forums, part of the Community channel category; Ofcom Forces BT to Cut UK Standalone Line Rental Costs by "at least" £5 - ISPreview UK The United Kingdom’s ...

    1. #1
      Scubbie's Avatar
      Scubbie is offline Sky User Moderator
      Exchange: 02392
      Broadband ISP: Sky Fibre Unlimited
      Router: Sky Q Hub ER110
      Sky TV: Sky+HD box
      Join Date
      Mar 2010
      Location
      Near Portsmouth
      Posts
      28,042
      Thanks
      827
      Thanked 2,202 Times in 2,072 Posts

      Ofcom Forces BT to Cut UK Standalone Line Rental Costs by “at least” £5

      Ofcom Forces BT to Cut UK Standalone Line Rental Costs by "at least" £5 - ISPreview UK
      The United Kingdom’s national telecoms regulator has told BT to slash the cost of their line rental service by “at least” £5 per month for landline-only customers, which would affect more than 2 million of the operators’ customers (i.e. those who don’t take line rental as part of a broadband bundle).

      At the end of last year Ofcom announced a review of telephone line rental prices (here), which have risen sharply over the past few years (partly to help balance against the rising cost of service provision in other areas (e.g. broadband) and lost revenues elsewhere). In recent years the price has risen by between 25% and 49% in real terms, while the underlying wholesale cost has fallen by around 25%.




      However the regulator notes that customers who buy bundled services (e.g. broadband, mobile, line rental and or TV) often benefit from big discounts, although the same cannot be said for those who buy landline services on their own. This is often “felt most acutely” by elderly and vulnerable people who tend to shun bundles and stick with the same provider / standalone line rental product for years.

      On average, landline-only customers have been with their provider for more than 20 years, compared to 8 years for phone with broadband customers, and 4 years for triple-play customers. Some 43% of customers with a standalone landline contract are aged 75+ and almost 80% (2.3 million) of the UK’s 2.9 million landline-only customers are with BT.

      Sharon White, Ofcom CEO, said:

      “Line rental has been going up, even as providers’ costs come down. This hurts people who rely on their landline the most, and are less likely to shop around for a better deal. We think that’s unacceptable.

      So we plan to cut BT’s charge for customers who take only a landline, to ensure that vulnerable customers get the value they deserve.”
      Ofcom found that BT’s “market power has allowed it to increase prices without much risk of losing customers” and other providers (e.g. Sky Broadband, Virgin Media, TalkTalk, Plusnet etc.) have then followed BT’s pricing lead by raising their own charges at a similar rate, which has become somewhat of an annual tradition.

      The regulator’s solution is thus to introduce an additional protection, which will force BT to cut the cost of their line rental service by at least £5 per month (£60 per year); although they’re also consulting on a figure as high as £7 per month.

      In practical terms Ofcom states that the £5 reduction would effectively return the cost of line rental to “2009 levels” and see the current monthly charge of £18.99 being slashed by -26% to just £13.99, although we’re not so sure about the 2009 remark because we recall it being about £12.50 in that year. Perhaps 2011 is closer.

      BTs Line Rental Price History inc. VAT
      2011 = £13.90
      2012 = £14.60 (+5.04%)
      2013 = £15.45 (+5.82%)
      2014 = £15.99 (+3.5%)
      2015 (Dec 2014) = £16.99 (+6.25%)
      2016 (Sep 2015) = £17.99 (+5.89%)
      2016/17 (Apr 2016) = £18.99 (+5.56%)
      The planned price cut would NOT apply to landline services sold by BT Consumer as part of a bundle of services including broadband. In addition, Ofcom are proposing “safeguards” to “prevent BT from making future increases to line rental and landline call costs by more than inflation” (these safeguards would cover the line rental, call charges and the call package add-ons).

      On top of that Ofcom are proposing to set a revised price for BT’s annual pre-paid line rental saver discount, which currently costs £205.08 (i.e. equivalent to £17.09 per month). Customers would get 10% off the annual cost of the new lower-price line-rental decided by Ofcom (e.g. should they reduce BT’s line rental to £13.99 per month, the annual pre-paid cost to customers would become £167.88 and with a 10% discount that’s £151.09).

      Ofcom hopes that other operators would then follow BT’s lead, although at present the rule change will only be forced upon BT. However there’s a risk that BT may simply try to compensate for the lost revenue by taking it from elsewhere in their product chain, which for example could perhaps result in price hikes for those who take their broadband bundles. Consumers may also face some additional price confusion if the line rental costs differ between standalone, broadband bundles and pre-paid discounts.

      We’re also trying to confirm what impact this might have on consumers who only buy their line rental from BT, while taking broadband from a separate ISP and putting it on the same line. Ofcom’s wording suggests that the no-bundles rule only applies to BT Consumer and not third-party broadband connections on the same line. We are double checking this to clarify and will update shortly.

      Otherwise Ofcom’s related consultation on these proposals will be open for responses until 9th May 2017 (here).

      UPDATE 28th Feb 2017


      Ofcom informs us that the proposed price cut would apply to all BT Consumer customers with standalone landline-only contracts, including customers who buy broadband from BT or “another provider under a separate contract“. This will certainly encourage some interesting changes in the market.


    2. Advertisement
    3. #2
      lettice's Avatar
      lettice is offline Sky User Member
      Exchange: 0.4 mile away and cabinet 350 yards
      Broadband ISP: Sky Fibre Max
      Router: ER110UK Sky Q hub
      Sky TV: SkyQ2tb + minis
      Join Date
      Jun 2011
      Location
      England
      Posts
      2,026
      Thanks
      12
      Thanked 189 Times in 180 Posts

      Re: Ofcom Forces BT to Cut UK Standalone Line Rental Costs by “at least” £5

      So on Sky having broadband but also being forced to have sky talk payg, would that qualify as getting a discount with this new offering or in the pipeline?
      I do not want a landline phone at all and only have the payg sky talk option listed as you have to.

      This should be half price, not just a fiver off.

    4. #3
      Scubbie's Avatar
      Scubbie is offline Sky User Moderator
      Exchange: 02392
      Broadband ISP: Sky Fibre Unlimited
      Router: Sky Q Hub ER110
      Sky TV: Sky+HD box
      Join Date
      Mar 2010
      Location
      Near Portsmouth
      Posts
      28,042
      Thanks
      827
      Thanked 2,202 Times in 2,072 Posts

      Re: Ofcom Forces BT to Cut UK Standalone Line Rental Costs by “at least” £5

      I know that there is a resentment for having to pay line rental when you don't want the landline but you do want a broadband product that comes over the BTO infrastructure. The way I read this though was that basically anyone with such a broadband product is actually paying an extra £5 for the privilege. Of course for some time it's always been hidden in the overall costs.

      This of course would be the same for all the different providers, not just Sky or BT.

      Sky Fibre Unlimited Pro: Connected at 80,000 kbps / 20,000 kbps
      Previous ADSL2+ Speed 19999 kbps 1153 kbps, Line Attenuation 17.5 db 6.9 db, Noise Margin 7.5 dB 8.7 dB
      Speedtest: 17.15MB/s 0.97Mb/s Ping 31 ms

    5. #4
      BurnIT's Avatar
      BurnIT is offline Sky User Member
      Exchange: 01827
      Broadband ISP: Sky Broadband Unlimited
      Router: Sagem F@ST 2504n
      Sky TV: Sky+HD box
      Join Date
      Mar 2012
      Location
      Polesworth
      Posts
      228
      Thanks
      5
      Thanked 2 Times in 2 Posts

      Re: Ofcom Forces BT to Cut UK Standalone Line Rental Costs by “at least” £5

      But will there be a reduction? Sky bills include a landline cost paid on our behalf??

    6. #5
      Scubbie's Avatar
      Scubbie is offline Sky User Moderator
      Exchange: 02392
      Broadband ISP: Sky Fibre Unlimited
      Router: Sky Q Hub ER110
      Sky TV: Sky+HD box
      Join Date
      Mar 2010
      Location
      Near Portsmouth
      Posts
      28,042
      Thanks
      827
      Thanked 2,202 Times in 2,072 Posts

      Re: Ofcom Forces BT to Cut UK Standalone Line Rental Costs by “at least” £5

      I doubt it.

      It appears that Sky are already including the line rental price with all their quotes for new customers. Also Sky normally includes broadband in one shape or form with all their lines.

      Sky Fibre Unlimited Pro: Connected at 80,000 kbps / 20,000 kbps
      Previous ADSL2+ Speed 19999 kbps 1153 kbps, Line Attenuation 17.5 db 6.9 db, Noise Margin 7.5 dB 8.7 dB
      Speedtest: 17.15MB/s 0.97Mb/s Ping 31 ms

    7. #6
      lettice's Avatar
      lettice is offline Sky User Member
      Exchange: 0.4 mile away and cabinet 350 yards
      Broadband ISP: Sky Fibre Max
      Router: ER110UK Sky Q hub
      Sky TV: SkyQ2tb + minis
      Join Date
      Jun 2011
      Location
      England
      Posts
      2,026
      Thanks
      12
      Thanked 189 Times in 180 Posts

      Re: Ofcom Forces BT to Cut UK Standalone Line Rental Costs by “at least” £5

      So we are still no clearer on this then.
      I thought things were supposed to be getting less complicated. If you read that above, its just makes your head hurt.

      Odd thing on this, my next door neighbours have Virgin.
      They do not use a landline at all like me and have tried going for a broadband only deal, but it works out exactly the same as having a broadband/basic phone package deal with all the tv they subscribe to.
      Which oddly works out the same price as sky as they still show a line rental charge of around £19. Which for the line rental went up by a £1 end of last year after BT announced their increase LOL!
      They only stick with virgin as they have a lifetime half price navy discount deal still ongoing from when cable round here was NTL.
      Scubbie likes this.

    8. #7
      Scubbie's Avatar
      Scubbie is offline Sky User Moderator
      Exchange: 02392
      Broadband ISP: Sky Fibre Unlimited
      Router: Sky Q Hub ER110
      Sky TV: Sky+HD box
      Join Date
      Mar 2010
      Location
      Near Portsmouth
      Posts
      28,042
      Thanks
      827
      Thanked 2,202 Times in 2,072 Posts

      Re: Ofcom Forces BT to Cut UK Standalone Line Rental Costs by “at least” £5

      As much as I understand why people want to drop the telephone and just have Internet, it is perhaps important to understand what it is that line rental covers.


      • Telephone number
      • Entry in telephone book (if you want)
      • Electricity to allow signals to pass down your line (voice and data)
      • Maintenance of the connection from your home to the exchange
      • Maintenance of the telephone exchange
      • Maintenance of the line from the exchange to a national network hub


      Ok the first two would be dropped if you don't want a telephone, same with the last, but I suspect that these are relatively small expenses.

      The rest would be applicable if you are using broadband. Broadband has additional expenses, such as maintaining the link from the exchange to your ISP's servers,so warrants the additional fees.

      Sky Fibre Unlimited Pro: Connected at 80,000 kbps / 20,000 kbps
      Previous ADSL2+ Speed 19999 kbps 1153 kbps, Line Attenuation 17.5 db 6.9 db, Noise Margin 7.5 dB 8.7 dB
      Speedtest: 17.15MB/s 0.97Mb/s Ping 31 ms

    9. #8
      BurnIT's Avatar
      BurnIT is offline Sky User Member
      Exchange: 01827
      Broadband ISP: Sky Broadband Unlimited
      Router: Sagem F@ST 2504n
      Sky TV: Sky+HD box
      Join Date
      Mar 2012
      Location
      Polesworth
      Posts
      228
      Thanks
      5
      Thanked 2 Times in 2 Posts

      Re: Ofcom Forces BT to Cut UK Standalone Line Rental Costs by “at least” £5

      But that does not explain why SKY are still going to charge at the higher rate! Tha is just effectively STEALING the extra, especially as they are likely to still show it as line rental.

     

     

    Tags for this Thread

    Posting Permissions

    • You may not post new threads
    • You may not post replies
    • You may not post attachments
    • You may not edit your posts
    •  
    SkyUser - Copyright © 2006-2017. SatDish and NewsreadeR | SkyUser is in no way affiliated with Sky Broadband / BSkyB
    RIPA NOTICE: NO CONSENT IS GIVEN FOR INTERCEPTION OF PAGE TRANSMISSION