BT to Reduce Charges for Landline-Only Customers

Following pressure from the regulator which is aiming to protect the elderly and vulnerable people, Britain’s BT has agreed to slash the amount that it charges customers who only use a landline service by 37%.

Ofcom had raised concerns regarding the price that the dominant telecoms provider in the country charged landline-only customers after determining that part of the market was not functioning properly.

BT stated that as a result of its agreement with Ofcom, approximately 1 million of its customers would observe their monthly bill decrease from April 2018.

Line rental will decrease from 18.99 pounds to 11.99 pounds a month, reducing the annual cost by 84 pounds a year.

Future call costs and line rental will be capped at the rate of inflation.

Ofcom believes that those customers most likely to take only a landline are the elderly or vulnerable who depend on the service and who are not likely to shop around for a deal that is better.

“Of the UK’s 1.5 million landline-only customers, two-thirds are with BT,” said Ofcom in a statement. “This position has allowed BT to increase prices without much risk of losing customers, and other providers have followed BT’s pricing lead.

“We expect BT’s 7-pound price cut to mean other providers can follow suit.”

Ofcom stated that it would keep a close eye on the market in the future to check whether it was working properly.