BT has announced price rises from 16 September - http://www.productsandservices.bt.com/consumerProducts/displayTopic.do?topicId=23777.

Most significant is the increase to the call set-up fee, from 6p to 7p. This charge applies to calls to 084x and 087x numbers at all times.



Those who are on the 12 or 18 month contracts for "Anytime" or "Evening and Weekends" may be interested to note that this change is NOT deemed to be to their "material disadvantage". This means that the waiver of the cancellation charge, in the event of terminating the service due to a price increase during the term, DOES NOT APPLY. BT claims that call charges are NOT a feature of their terms and conditions of service, so they cannot represent a "material disadvantage"

Ofcom takes a different view.  It believes that only changes which increase the total monthly cost by 10% or more are "material".

I am inclined to disagree with both Ofcom and BT on this matter, however this is probably a matter for lawyers.



The on-going Ofcom "Review of additional charges" is covering "early termination charges", but the issue of what qualifies as a "material" price change is outside the scope of this exercise.

Here Ofcom states that "it is important that suppliers make it very clear to consumers the level of any cease charge at the point at which the consumer is considering terminating their contract". I would have personally thought it more important to explain to customers at the point of considering entering a contract that the price may increase by up to 10% and/or that call charges are not covered by the terms of the agreement.

BT's response to the Ofcom consultation is interesting, as it takes an opposite view to that stated above with regard to the relevance of call charges to a contract. Whilst believing that call charges are immaterial to the customer, it states that income from calls should be relevant to the setting of the level of the "early termination charge".

SilentCallsVictim wrote on Jul 23^rd, 2008 at 10:18am:

Ofcom takes a different view.  It believes that only changes which increase the total monthly cost by 10% or more are "material".

How does one ascertain whether the change or changes have resulted in a higher total monthly cost and what that percentage is?

Remember, "changes" aren't just price rises, but changes to call duration rounding and price rounding.

BT would have you believe that 0845 calls on Call Plans are charged at 0.5 pence per minute during the evenings. These calls are rounded up to the next whole second. If this was it then the 0.5p/min would seem good. But under General Notes - Dialled Call Charges it says:

Quote:

Each call charge will be rounded up to a whole penny, except for call charges to non-Mobile 07x numbers which will be rounded up to a tenth of a penny. Fixed Fee prices where duration charges do not apply will be rounded up to a tenth of a penny. The total call bill will then be rounded to the nearest whole penny.

This suggests that call charges will infact be 1 pence for every two minutes. That's equivalent to charging in two minute intervals !!!  :o :o

SilentCallsVictim wrote on Jul 23^rd, 2008 at 10:18am:

The on-going Ofcom "Review of additional charges" is covering "early termination charges", but the issue of what qualifies as a "material" price change is outside the scope of this exercise.

It's interesting to note that there are 199 responses to that consultation, most of them from general consumers.