Punish BT for increasing its landline charges!

by Emma Roberts on 23 August 2010  |  38 comments
Tweet

Emma Roberts reveals why now is a good time to switch landline providers and uncovers some tips on saving money on your landline bills.

It seems that BT never fail to annoy masses of their loyal customers.

This time, from the 1st of October, they’re planning to increase their line rental fees by 50p as well as boosting up their call charges. On average, charges are going up by 10%, with many customers now paying £45 a year more than others - just for landline rental!?

And of course, as soon as BT announces changes, other landline providers (such as Talk Talk and Sky) hike up their charges as well.

There are ways to avoid the hikes, as this article explains, but many of them are quite finnicky and come with catches in the small print (such as needing to make a certain number of BT calls a month). Why should BT's customers be punished for their loyalty in this way?

For this reason, here at lovemoney.com, we're calling on readers to fight back and punish BT en masse by simply switching to a new landline provider.

And the good news is, the helpful folks at Ofcom have just provided a lifeline for stranded landline owners looking to switch their providers or give up on landlines altogether.

After 18months of discussions with the top three landline providers; BT, TalkTalk and Virgin, Ofcom have announced that landline termination charges will soon be reduced by up to 85%.

For example, if you wish to ditch BT, then you’ll have to pay £2.00 a month for the remaining time of your contract rather than £11.54. Take a look at the table below for some more information on the most basic packages from the top three landline providers.

So, the reduction of the early termination charge means this is great news if you’re fed up with BT or any other landline provider. But before you hang up on them, make sure you know how to get the best deal on your landline.

Should you switch?

Before cancelling your current landline contract, consider all the costs involved.

Now that the top three landline providers are lowering their termination fees, other companies are likely to follow because if they don’t they could face formal enforcement action from Ofcom.

Recent question on this topic

• drinkbubba007 asks:

  What is the best cheap but effective (and reliable) broadband provider?

  • 
    bellini answered "Hi drinkbubba Jane's..."
  • 
    bellini answered "Hi there This recently published..."
  • Read more answers

This means that your early termination payments should be relatively low if you have a basic contract with your provider.

If you have a bundle deal with your current provider that includes broadband or television, you could be looking at higher termination costs, so check this out before you cancel your contract.

If you’re certain you’ve had enough of your current package, check out a landline comparison site, such as HomePhoneChoices or FirstHelpline to find the current best deals around.

Save a bundle

Getting a bundle landline deal that includes broadband can save you money and hassle, as you’ll only have to pay one company for both bills.

However, with bundle deals, call costs outside your package allowance can be expensive. So always check that you’re getting a good deal on your broadband to suit your user needs.

You should also consider connection fees and installation fees that may occur. Below is a rundown on some popular landline and broadband bundles.

Before you sign up for a bundle deal, consider your needs as a consumer, such as if you need the fastest broadband and a high download limit.

Consider when you are most likely to make calls and how often you actually use your home telephone. Writing all these points down will help you find the perfect package for you.

Some providers, such as Sky and Virgin media, also offer TV packages within their bundles, which can save money. Make sure you check these out too before you make your decision.

Other money saving landline tips:

Payment options: Many providers will slice pounds off their bills if you pay by direct debit or upfront. Also, if you choose paperless bills that are sent to

your email, you will also save money with some companies, including BT.

Off-peak charges: Check what time is considered as ‘off-peak’ as your supplier can change these times whenever they want without warning.

Always ensure you try and make calls within the off-peak time frame, as this will save you money in the long-run.

Do you actually need a landline?

The final point to consider is whether you actually need a landline. Most people have extensive mobile phone contracts that offer inclusive minutes and internet browsing.

You could always consider sticking with your mobile and investing in a dongle so you can have mobile internet and you could use Skype to make free calls via your computer.

With Ofcom lowering early termination fees, it’s a great time to change your landline provider if you’re unhappy with their service. Just make sure you make all the relevant checks before you do so.

More: BT ramps up landline charges by 10%| Make free calls through your computer|