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Tesco announces line rental increase

Rebecca Rutt
by Lovemoney Staff Rebecca Rutt on 20 December 2012  |  Comments 3 comments

Tesco has announced a rise in the price of its line rental and some call costs but a fall in the price of some broadband packages.

Tesco announces line rental increase

Tesco is the latest company to announce a price rise in its line rental charges, from £13.75 to £14.90 in March 2013.

Customers on a contract will be able to opt out of paying the increased fees but must do so within 30 days of being notified about the changes.

Prices are also changing on other packages but Tesco says that after these rises its prices will be frozen until 2014.

Tesco price rises

Most Tesco broadband and home phone customers will see a monthly rise of £1.15 from 1st March in the cost of line rental.

There will also be a host of other changes to calls and packages which can be viewed on the Tesco website.

The rate for calls to UK landlines and 0845/0870 numbers is rising from 7.5p to 8.4p per minute and the standard connection fee will go up to 13.8p, from 12.5p.

Customers using Tesco Broadband but who are outside of the company’s network will also see a rise in certain packages. Those with the Tesco Broadband with Inclusive Evening and Weekend package will have to pay £2 more per month while those on the Inclusive Anytime Calls package will see a rise to £20.50, from £18.50.

The rates for calling certain international destinations, including Australia, France, Hong Kong and Turkey, will increase from 7.5p to 8.4p per minute.

Customers in the Tesco Broadband network area will see a fall in the price of an evening and weekend calls package from £6.50 to £6 and the Anytime call package will also be 50p a month cheaper.

Price rises

The news from Tesco is no real shock as all the other major telecommunications providers have made similar announcements in the past few months.

BT, Sky, Virgin and Talk Talk are all pushing up prices and BT now charges the most at £15.45 a month. Tesco, traditionally a cheaper provider, will be more expensive than Sky, AOL and Plusnet but cheaper than Virgin Media, BT and Talk Talk. 

Provider* 

Price before increase 

Price after increase

Date of price increase

Plusnet

£12.99

£13.99

18th Nov 2012

Sky

£12.25

£14.50

1st Sept 2012

Virgin Media

£13.90

£14.99

1st Feb 2013

AOL

£13.90

£14.35

1st Jan 2013

BT

£14.60

£15.45

5th Jan 2013

Talk Talk

£14.50

£14.95

1st Jan 2013

Tesco £13.75 £14.90 1st March 2013

*source:Broadbandchoices

How to avoid paying more

Tesco is allowing customers to switch out of a contract if they don’t agree with the price rises. But if this applies to you, you need to do it soon as you’ve only got 30 days from receiving notification about the price rise to switch to a cheaper provider.

Paying in one go for your line rental is also cheaper, but you need to have this ready cash in the first place to do so.

Are you a Tesco customer? Do you think it’s fair prices are going up and will you switch to another provider to avoid paying more?

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Comments (3)

  • yocoxy
    Love rating 152
    yocoxy said

    I would suggest using 18866. Or one of its competitors then only pay the line rental to these companies. I have 18866 prefix on speed dial, I pay 5p connection per call but calls to UK standard numbers are free and its 2p to Australia for example.

    Skype also works very well these days and is not only for video calling. Within our company we almost never use phone lines for internal (country to country) calls.

    Report on 21 December 2012  |  Love thisLove  0 loves
  • driver67
    Love rating 26
    driver67 said

    As a telephone engineer of many years I would respectfully suggest you need to look at how much you are going to use your phone, before doing anything else. Also headline rates of very low prices are meaningless if there is a connection/minimum fee, and I have seen many people caught by this. (For instance, 0.9ppm is no good if there is a 5p connection fee if you just want to ask someone 'Are you on your way home yet, Darling?' )

    I have just changed provider after many years with BT. I will not recommend; you really need to check carefully yourselves.

    Report on 21 December 2012  |  Love thisLove  0 loves
  • oldhenry
    Love rating 343
    oldhenry said

    I have had Tesco broardband for many years, the cheapo one. It was £14.46 a month but now they want £20 from March. The speed is poor but has been totally reliable. But I think this increase is way too much for a poor speed. BT have always been offering me deals, as I have phone with them, so it may be time to go to BT. I pay rent once a year up front which makes it reasonable and a monthly fee for all calls which seems quite reasonable too.

    I do not trust many suppliers as friends tell me how awful they are when it come to service.

    I think Tesco are shooting themselves in the foot here.

    Report on 21 December 2012  |  Love thisLove  0 loves

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