Ofcom plans to return landline rental charges to 2009 levels

[HEXUS]

BT will need to cut unbundled landline rental by £5~£7 if Ofcom proposal approved.

Read more.

[shaithis]

I bet there will be a 5-7 ukp hike in BB wholesale prices at the same time.....

[spacein_vader]

Why are OFCOM only applying this to users with just a land line. Surely the whole argument for line rental is that there is a fixed cost to providing the line regardless of what it is used for?

[LSG501]

Why are OFCOM only applying this to users with just a land line. Surely the whole argument for line rental is that there is a fixed cost to providing the line regardless of what it is used for?

line rental is the universal charge that we can't get out of if we have that line, it's included in the package deals and even resellers have to pay that to bt... yeah aren't monopolies great...

To be honest it's about time they did somethign about the cost, the prices have been going up a lot of late to compensate for their expenses such as buying tv shows (which I don't have or want from them) and finally do what they should have been doing a decade earlier and upgrading our telephone infrastructure, which they then put the cost onto the consumer rather than it cutting into their profits... all of which has been allowed by ofcom.

Mind you, nothing has actually happened yet as this is still going through the 'talks' with BT so I can see this being watered down to the bare minimum number of people they can get away with... so people on benefits, ie the work shy (yes I know there are some valid job seekers but they won't get it) and pensioners (who I personally feel should get it for free anyway)

[scaryjim]

Why are OFCOM only applying this to users with just a land line. ...

The underlying implicit suggestion is that line rental prices have been artificially inflated to support headline grabbing reductions to the cost of other bundled services (like "free" broadband). People who only have a landline are paying higher line rentals to support price cuts in services they don't use.

[Dashers]

the prices have been going up a lot of late to compensate for their expenses such as buying tv shows (which I don't have or want from them) and finally do what they should have been doing a decade earlier and upgrading our telephone infrastructure

You're muddling up BT Wholesale (infrastructure) with BT Consumer (broadband and phone lines). BT Consumer rent lines off BT wholesale just like any other company. BT Wholesale don't pay for sports out of their money pot.

[EndlessWaves]

Why are OFCOM only applying this to users with just a land line. Surely the whole argument for line rental is that there is a fixed cost to providing the line regardless of what it is used for?

Because BT have been hiding broadband costs in the line rental charge, which impacts the elderly who haven't adjusted to the fact that they're now one company of many. If you look at most small business or enthusiast telecoms providers you'll see they charge £10-12 a month and 1p per minute for calls instead of £19+ monthly & 10p or more per minute BT and other big, splashy ISPs are charging.

This won't affect prices for most customers as the cost is just being transferred to the part of the bill it should be on.

This is just Ofcom reminding BT that they have an obligation for all the contracts they got free at privatisation and if they want to play the freebies game then this isn't the way to do so.

[LSG501]

You're muddling up BT Wholesale (infrastructure) with BT Consumer (broadband and phone lines). BT Consumer rent lines off BT wholesale just like any other company. BT Wholesale don't pay for sports out of their money pot.

Well until the wholesale and consumer parts are separate companies as far as I'm concerned and many others are concerned it's the same company because the profits all go into one big pot.

[Rubarb]

about time, but they will hike the price up some other way.

[Top_gun]

BT boss Gavin Patterson can collect up to £7m a year

Exploiting old age pensioners - shame on you BT.

One further point. I don't think there are many good landline deals anymore compared to five years ago.

[spacein_vader]

BT boss Gavin Patterson can collect up to £7m a year

Exploiting old age pensioners - shame on you BT.

One further point. I don't think there are many good landline deals anymore compared to five years ago.

Landlines only are a dying market & in a way at least it's better to target pensioners than other groups who aren't anywhere near as financially secure.

That said, nobody should be targeted. Openreach should be entirely independent & set line rental (using a public formula for doing so) each year. This will allow BT retail to compete on equal terms.

[tomthum]

lets face it BT is just ripping of customers, we should not need landlines in this day and age
we could have a decent Wi-Fi service if they wanted to invest monies but then there profits would go down
what about satellite broadband they could lower there prices just an other route to think about

Tom G

[Top_gun]

Landlines only are a dying market & in a way at least it's better to target pensioners than other groups who aren't anywhere near as financially secure.

As long as BT ensures you need a landline for broadband then it's wrong to assume landlines are a dying market unless you're referring to call charges.

Not all pensioners are financially secure or in full time wrong.

lets face it BT is just ripping of customers

Failure of privatisation thirty years later.

[Rob_B]

I was on the phone with BT recently and they repeatedly reminded me of the extra tv, sport and other guff that I don't have, use or want and what good value they are even with the upcoming price rises...
If they offered a landline only, with no ability to call just to use broadband then it's take it in an instant.

[spacein_vader]

As long as BT ensures you need a landline for broadband then it's wrong to assume landlines are a dying market unless you're referring to call charges.

As I said, Landlines ONLY are a dying market. The majority of the market also take some form of broadband.

[Top_gun]

As I said, Landlines ONLY are a dying market. The majority of the market also take some form of broadband.

Do you have any stats to back up your assertions?