BT told to end rental rip-off

Ofcom order a return to 2009 prices

TELECOMS giant BT have been ordered to end a line rental rip-off and slash prices for 2.3million customers.

Industry watchdogs Ofcom slammed BT for hiking line rental by 46 per cent since 2009, despite their costs plunging 26 per cent.

Those worst affected are households – often the elderly – with a landline phone but no internet.

Nearly 80 per cent – 2.3million – landline-only customers are with BT. Some of them have stuck with the firm for decades.

Ofcom have proposed BT cuts their line rental prices by between £5 and £7 a month.

It would mean that customers will pay no more than £13.99 monthly, taking the charge back to where it was in 2009. The move could cost BT as much as £193million a year in lost revenue.

BT will also be prevented from raising line rental by more than inflation in future.

Ofcom say landline-only customers have effectively been subsidising a price war by BT and others to attract broadband and TV customers.

The watchdog body’s chief executive Sharon White said the cut up 10.4 at 7263.4 GKN GlaxoSmithKline Halfords Hays HSBC Imperial Brands International Airlines Grp ITV Kingfisher Land Securities Legal & General Lloyds Marks & Spencer Morrison National Grid Next Old Mutual Pearson Prudential Reckitt Benckiser 359.9 1648.0 339.7 162.8 646.5 3793.0 537.0 202.5 329.2 1066.0 248.3 68.7 334.8 242.6 977.5 3827.0 218.1 674.0 1607.5 7311.0 +16.9 +3.5 -2.4 +4.9 +0.5 -19.5 +13.0 +0.9 +5.0 +10.0 +1.2 -0.5 +5.8 -1.2 -0.9 +17.0 -1.6 +14.5 -6.5 +15.0 Oil = $55.32 RELX Rentokil Initial Rio Tinto Rolls-Royce Royal Mail RSA RBS J Sainsbury SSE Severn Trent Serco Sports Direct Shell Sky Smith & Nephew Smith WH Stagecoach Standard Chartered Standard Life TalkTalk Taylor Wimpey Tesco would “ensure vulnerable customers get the value they deserve”.

Ofcom expect other providers to cut their prices in response.

Rivals TalkTalk backed Ofcom’s actions.

And Lib Dem business spokesman Don Foster said: “The poorest and most vulnerable in society must be protected from exploitative business practices.”

Citizens Advicechief executive Gillian Guy called it “really positive”, adding: “We’d like to see similar actions in other markets, starting with energy.”

BT said: “Recently, we have frozen the cost of line rental for all of our customers who take a BT phone line. We have also been improving the service we provide.” 1505.0 239.1 3297.0 787.0 414.6 599.0 237.8 267.6 1541.0 2338.0 117.8 297.0 2173.5 997.5 1211.0 1692.0 207.6 722.4 368.7 175.8 180.0 188.4 +3.0 +4.0 -43.5 +19.0 +5.4 +2.0 +4.4 +0.6 +11.0 +14.0 +1.2 -0.9 +1.0 +1.5 +10.0 +13.0 -1.9 -1.9 +4.2 +5.2 +1.6 -0.7