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BT increase their line rental yet again

 
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dorf
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PostPosted: Fri Feb 01, 2008 3:45 pm    Post subject: BT increase their line rental yet again  Reply with quote

BT have announced that they are increasing the cost of line rental by 7% and daytime calls by 23%, but will give 10m customers free weekend calls. From today line rental will increase from 11 per month to 11.75, while the cost of daytime calls will rocket from 3.25p per minute to 4p per minute.

Inevitably now that Ofcom has given BT carte blanche to increase its prices without any sanctions this is going to be the continuing trend. They will hold consumers to ransom with line rental rather than competing on a commercial basis. This means that if you have another CPS provider for your calls and/or broadband this new dirty commercial trick by BT gives them a further unfair commercial advantage, because they are moving some of the contribution from call charges and broadband provision on to line rental. This is all a continuation of the dirty tricks of BT, due to their inability or unpreparedness to compete commercially in call costs; their strategy condoned by Ofcom is to increase the line rental charges but reduce corresponding call charges to attempt to blackmail customers they have lost (initially solely due to their high call costs) back to them. This was why they originally forced all those on line rental only to their Option 1 - and Ofcom let them do it!

This it seems is the only way which BT can think of, with their ongoing Civil Service mentality, to complete  - by dirty commercial tricks! With their continuing virtual monopoly and economies of scale they should in fact be able to offer the lowest call charges, if they were run as a true, efficient commercial enterprise. The problem is that they do not seem to have any competent senior staff who understand the world of commerce, and their mates at Ofcom just encourage them to continue with their virtual monopoly and SMP mindset, and do nothing to protect the Citizen Consumer!

Several campaigners concluded this would be the future scenario when Ofcom had yet another of their supposed "consultations" concerning removing price controls on BT. Ofcom deliberately overlooked the fact that BT still controls almost all of the PSTN, and critically of course the "last mile connections".

Oh for when we have real wireless national broadband. Goodbye Mr. BT for good!


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dorf
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PostPosted: Tue Feb 19, 2008 1:21 pm    Post subject: Reply with quote

BT provided a younger clone of Gordon Brown to appear on Working Lunch today See http://news.bbc.co.uk/1/hi/programmes/working_lunch/5170354.stm. He skilfully avoided substantively answering the questions put to him concerning BT's latest dirty commercial trick of increasing their line rental charges to appear to be more competitive in call prices and of increasing their charges for paying in any way except DD.

He tried to pretend that BT had done this only to honestly compete! He claimed that all other telco providers will not allow their customers to pay by any method other than DD so BT are doing their customers a favour by allowing them to pay in other ways provided they pay more! He attempted to pretend that BT was only forcing through the effective line rental increases to help their customers, so that if they remembered to make just one call a month via BT, even if they used their cheaper competitors to make all their other calls, they could benefit by having the free calls at weekends and in the evenings. He claimed that no other provider offered these as cheaply as BT would now! Is this guy totally out of touch with reality or was he deliberately doing a Gordon Brown?

The reality clearly is that BT has all the advantages. It has economies of scale and smp. Yet it is managed and run so disastrously that it cannot compete on a level playing field basis. How pathetic BT and the people running it are. At least they could give their customers and British consumers the credit for being pretty savvy, which they are for the most part. The fundamental problem is that people running BT, like the current government, are so out of touch with reality that they really don't believe anyone will actually be able to see through what they are doing. They believe that everyone else is dumb like them!


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