cancel
Showing results for 
Search instead for 
Did you mean: 

Line rental and cheaper prices?

Devonian
Grafter
Posts: 1,854
Registered: 01-05-2011

Line rental and cheaper prices?

Source:  http://uk.finance.yahoo.com/news/line-rental-caps-mean-cheaper-115232583.html

Tighter regulation of wholesale costs could bring a wave of discounts on line rental and broadband – but only if providers pass on their savings.

For years now, the cost of our home phone line rental has been steadily climbing skywards. This wouldn't be so troubling were it not for the fact that nowadays few of us actually use our landline with any degree of regularity.
The rise of mobiles has made our landlines a luxury we can comfortably cope without. But for most of us the same can't be said of broadband, an essential utility upon which we rely for entertainment and keeping in touch with relatives.
Industry regulator Ofcom appears to have recognised this ongoing trend in proposals to lower the wholesale cost of landlines, which should result in cheaper line rental and broadband for millions of households across the UK.

The problem with line rental
When it comes to paying your home phone bill, it's possible to feel you're being robbed – fleeced on a monthly basis for the sake of keeping your broadband connection alive.
As broadband providers fight for our attention by cranking up the speeds and dishing out discounts, the cost of line rental has crept up to offset the savings we make elsewhere.
We're now at a point where it's not unusual for line rental charges to more than quadruple the monthly cost of having broadband.
There are cheap deals available, of course but regardless of how much, lots of us are ultimately still paying for a phone line we'd ditch given half the chance.


Ofcom to the rescue!
What Ofcom has proposed is a series of reductions; not mere freezes, but actual reversals of past price hikes to the wholesale costs that apply to broadband providers.
You see, what most people don't realise – let's be honest, why would they? – is most major UK providers don't actually have their own network as such.
Instead, they pay wholesale charges to use the national telecoms infrastructure, maintained and operated by BT and, more specifically, its network access division Openreach.
Ofcom thinks Openreach should reduce the amount it charges providers – the likes of Sky, EE, Plusnet and TalkTalk – to help create a more level playing field.
But while reduced wholesale fees mean lower running costs for BT's rivals, there's no guarantee those providers will actually pass on their savings to the likes of you and me in the form of lower prices.

Take matters into your own hands
The fact many are unaware that their broadband or phone provider uses Openreach to deliver its services isn't necessarily a problem.
However, people do need to be aware if their provider is benefiting from wholesale price cuts, in order to make a fuss if those savings aren't passed on.
Just imagine for a moment, if wholesale oil prices fell but petrol stations kept their prices high. Drivers everywhere would protest, and quite rightly so. We need to be empowered with the knowledge to make similar demands of their broadband provider.
Anyone unsure if they'll benefit from Ofcom's price controls should contact their provider before signing any new contracts, to see if they'll be in line for cheaper line rental and broadband next year.
Those who haven't changed their provider in a long time should definitely check for deals available anyway. Why wait until next year to save money if you could switch and start saving now?

What's the official PlusNet view on this?
Yes, it is based on an Ofcom decision to be enforced in 2014, but just 3 months from 2014, PN are putting the price of line rental UP.
21 REPLIES
Community Veteran
Posts: 6,307
Thanks: 86
Fixes: 3
Registered: 08-01-2008

Re: Line rental and cheaper prices?

Good find but not sure that chit chat is the best place to get an 'official' response (though I look forward to hearing what it is).
Call me 'w23'
At any given moment in the universe many things happen. Coincidence is a matter of how close these events are in space, time and relationship.
Opinions expressed in forum posts are those of the poster, others may have different views.
Devonian
Grafter
Posts: 1,854
Registered: 01-05-2011

Re: Line rental and cheaper prices?

No idea where else it may belong.. feel free to move it MODS Wink
Community Veteran
Posts: 13,921
Thanks: 514
Fixes: 7
Registered: 01-08-2007

Re: Line rental and cheaper prices?

Quote from: Devonian
What's the official PlusNet view on this?

Stay quiet lol.
Seriously with 3G dongles, mifi, phone tethering etc, I don't think we'll be keeping the landline the next time we move. It seems pretty pointless just for the sake of nuisance calls from previous people and sales calls etc. I'd quite happily live with a mobile connection. Not sure about the missus as she likes using skype a lot but thats less than it used to be.
Don't get me wrong, I don't mind the landline but the nuisance calls and the charges for disconnecting and moving your broadband (someone pressing a button on their computer screen) seem ridiculous to be honest. It's daylight robbery. The last time I heard a BT cessation charge was something like £50 - then the same to get it reconnected at your new address. Whats the point of that when you can go with a mobile signal?
I need a new signature... i'm bored of the old one!
Devonian
Grafter
Posts: 1,854
Registered: 01-05-2011

Re: Line rental and cheaper prices?

TBH I have an unlimited data option with my mobile on Three, on 3g I get around 8meg at home, skype works perfectly, Three let you tether also.
So like you I would be happy with mobile internet, the problem is I also have 2 xbox and freesat, 2 enabled tv's, and a bluray live player wired up.
Community Veteran
Posts: 6,307
Thanks: 86
Fixes: 3
Registered: 08-01-2008

Re: Line rental and cheaper prices?

Nuissance/Sales/PPI calls etc. are not confined to landlines, I've already received some on my (company) mobile.
Not sure what gaming performance would be like on mobile and data allowances are usually quite restrictive (except on expensive 'all you can eat' plans), oh, and the signal is even more of a lottery for many than copper line performance.
One day I'm sure that many will be served by great mobile broadband but I don't think we're there yet.
Call me 'w23'
At any given moment in the universe many things happen. Coincidence is a matter of how close these events are in space, time and relationship.
Opinions expressed in forum posts are those of the poster, others may have different views.
Community Veteran
Posts: 13,921
Thanks: 514
Fixes: 7
Registered: 01-08-2007

Re: Line rental and cheaper prices?

Quote from: w23
Nuissance/Sales/PPI calls etc. are not confined to landlines, I've already received some on my (company) mobile.

Yeah but good luck ringing a 3g dongle / mifi device  Cheesy
Mobile numbers aren't recycled as much as the landline numbers (yet). I expect the day will come but for the time being it's not an issue.
I need a new signature... i'm bored of the old one!
Community Veteran
Posts: 38,246
Thanks: 936
Fixes: 56
Registered: 15-06-2007

Re: Line rental and cheaper prices?

Let us go to the horses mouth
http://media.ofcom.org.uk/2013/07/11/ofcom-proposes-new-prices-for-landline-and-broadband-services/
Quote
New prices for sustainable competition
The proposed new prices are designed to provide incentives to invest in networks while also ensuring that broadband and landline prices are affordable for consumers.
The prices would be set by charge controls linked to inflation (measured under the consumer price index, or CPI). This form of regulation provides an incentive for BT to make efficiency gains. Ofcom is consulting on the following charge controls on annual rental charges which would come into effect on 1 April 2014 and run until 31 March 2017:
   Fully unbundled lines: the regulated wholesale price for this service today is £84.26 per year. Under Ofcom’s proposals this will fall in real terms by between CPI − 0% and CPI − 6% every year;
   Shared unbundled lines: the regulated wholesale price today is £9.75 per year. Under Ofcom’s proposals this will fall in real terms by between CPI − 8% and
   CPI − 12% every year;
   Wholesale line rental: the regulated wholesale price today is £93.27 per year. Under Ofcom’s proposals this will fall in real terms by between CPI − 2% and CPI − 8% every year.
These proposals are subject to further work by Ofcom on quality of service and fault levels on BT’s copper network. Ofcom will consult further later in the year should that work suggest any need to modify these proposals.
Now the interesting part of this is this bit as the actual reductions are minuscule for the end user
Wholesale line rental: the regulated wholesale price today is £93.27 per year which will be ex VAT so the actual charge is £112 per year or £9.33 per month anything above that is overheads and profit and any bundled calls. The fairest comparison for Plusnet is the Line Rental Saver which doesn't include any calls except the few to Plusnet and other Plusnet customers and costs £138 per year from October
Note - I can't think of anywhere else to put it but I am sure it will be spotted on Monday  Roll eyes
Community Veteran
Posts: 6,307
Thanks: 86
Fixes: 3
Registered: 08-01-2008

Re: Line rental and cheaper prices?

Quote from: Sprite
Yeah but good luck ringing a 3g dongle / mifi device  Cheesy

Fair point.
Quote from: Oldjim
Wholesale line rental: the regulated wholesale price today is £93.27 per year which will be ex VAT so the actual charge is £112 per year or £9.33 per month

So how the heck can Primus offer line rental for '£5.99/month if you sign up for a year via comparison site Homephonechoices': http://www.moneysavingexpert.com/phones/home-phone-calls ; Crazy
(Though admittedly 'However, over the last few months we've received reports of customer service and billing problems.' - same source)
Call me 'w23'
At any given moment in the universe many things happen. Coincidence is a matter of how close these events are in space, time and relationship.
Opinions expressed in forum posts are those of the poster, others may have different views.
Devonian
Grafter
Posts: 1,854
Registered: 01-05-2011

Re: Line rental and cheaper prices?

The saving for the EU maybe tiny, but if the over all wholesale rental is dropping year on year, and the resale price rises year on year.....  Undecided
Also, the combined saving for PN as a whole over thousands of lines, will work out to many thousands of pounds saving, so assuming the EU doesn't see the cost of the monthly bill drop, will PN put this saving directly into upgrading the network, or improving the customer service?
Razer
Grafter
Posts: 1,375
Registered: 17-11-2012

Re: Line rental and cheaper prices?

Quote from: w23
So how the heck can Primus offer line rental for '£5.99/month if you sign up for a year via comparison site Homephonechoices': http://www.moneysavingexpert.com/phones/home-phone-calls ; Crazy
(Though admittedly 'However, over the last few months we've received reports of customer service and billing problems.' - same source)

It would be nice if they gave a link with that to show what these 'reports' are.
Community Veteran
Posts: 38,246
Thanks: 936
Fixes: 56
Registered: 15-06-2007

Re: Line rental and cheaper prices?

http://forums.moneysavingexpert.com/showthread.php?p=60595427#post60595427
Quote
Primus have now stated to me:
"BT may have lowered their price for WLR this financial year; however we are not a reseller of BT so have no connection with their prices.
There are many other big phone and broadband provider who are wholesalers of WLR products that offer smaller companies like us to resell their products and unfortunately as we are a reseller, we have no control of when price increases occur."
and having read that thread and this one http://forums.moneysavingexpert.com/showthread.php?p=59682397 the best comment if you are thinking of moving to them - On your own head be it
Note that Primus may move you to LLU phone which can mean no more Plusnet broadband
Community Veteran
Posts: 6,307
Thanks: 86
Fixes: 3
Registered: 08-01-2008

Re: Line rental and cheaper prices?

Thanks Jim.
They look quite risky (and disorganised), I guess you get what you pay for (if you're lucky).
Call me 'w23'
At any given moment in the universe many things happen. Coincidence is a matter of how close these events are in space, time and relationship.
Opinions expressed in forum posts are those of the poster, others may have different views.
Razer
Grafter
Posts: 1,375
Registered: 17-11-2012

Re: Line rental and cheaper prices?

No, it doesn't look good, does it?
Devonian
Grafter
Posts: 1,854
Registered: 01-05-2011

Re: Line rental and cheaper prices?

Wow.. Primus sound like TalkTalk.. just worse!  Shocked