darkstar wrote on Jul 22
nd, 2006 at 8:45am:
1. Line rental on BT Together Option 1 from £10.50 to £11.00 per month: £11 is STILL operating at a loss, we are trying to drag back some of the money we are losing on this package. Basic laws of economics surely? If I ran a buisness I wouldnt want to sell by products at a loss....
If I remember correctly, Ofcom did an investigation into the costs involved for maintaining the copper wiring, etc and it was about £8/£9 (please someone correct me if I'm wrong
).
Quote:2. Extension of daytime rate to start at 6am instead of 8am: Personally I find the 12 hour days are easier for people to grasp. Other than that I cant comment.
That's the same spiel that BT used which is common for companies to use spiel like this to cover the reason for the increase. "Simplifing prices" is another spiel used to hide the fact that prices are going up.
Quote:3. Minimum call charge from 5p to 5.5p (6p for business): again, welcome to inflation. BT has to pay people more (for example) and so has to find that money from somewhere. Or did you think they could charge the same price forever?
BT only have to pay other people for calls that may not end on their own network and given the number of customers on BT this is not likely to be high. Look at the flip-side where the likes of TalkTalk, Primus, etc can still have lower minimum call charges but yet they pay more because all calls made from their network will end up on other teleco's like BT, Telewest/NTL, etc.
Quote:4. Evening/weekend rate after 1 hour from 1p to 3p per minute: Seriously....such a petty point! How many people talk for that long without hanging up and re-dialling? We even tell them that when they go onto the packages.
I agree petty but some women can gab forever including some kids and I can imagine some forgetting to hang-up the phone before the hour as they're too into their conversation to realise the time. I realise this doesn't happen often but it still happens and it is still a price increase none the less.
Quote:5. Call charge to Speaking Clock 123 from 20p to 30p: I dont know.
For obvious reasons - ie to increase their prices
Quote:6. Minimum call charge on public payphones from 20p to 30p: maybe that 20p wasnt enough to cover the cost of the upkeep?
I agree the upkeep of payphones maybe expensive but the cost of making calls from them I'm guessing can probably cover this - especially if one makes the mistake of making a call to a 07, 084x/087x, 09x number (the 08x numbers are very common these days).
Quote:7. Introduction of £5 late payment charge: Well if people payed their bills it wouldnt be a problem.
But seriously, it costs just under that to follow up on 80% of the peopel who dont pay on time.
Some people maybe in financial trouble and have probs paying. How can it cost £5 to follow up when its done automatically by your computers - the only cost is the paper/ink/envelope and the couple of seconds it takes someone to put it in an envelope. £5 per account that is overdue based on the above sounds like BT are making money from those that do unfortunately pay late.
Quote:8. Call charge to directory enquiries 118500 from 15p to 23p per minute plus 40p connection charge: this again I dont know.
Again obviously to just increase charges and get more money
Quote:9. Ring back charge from 10p to 15p per use - chargeable even if not connected after 45 minutes trying: becouse it still costs BT to do this (to counter the chargeable even on no connection). The price increase I again dont know.
I don't think I need to mention why the price increased!
Quote:10. Introduction of call return fee of 6p for pressing 3 after 1471: I dont know, but I agree this seems like a rip off.
Similar to above
Quote:11. Introduction of call return fee of 7.5p for pressing 0 after 1571 : as above
As above
Quote:12. New installation connection fee increased from £75 to £125: Yeah, this increase is way over the top for sure. I know Openreach charge BT Retail the cost, so I assume they gave us a price and we added to it in order to cover our costs. But again thats an assumption.
Although I don't like the increase I can see the reasons for this as I know sending an engineer out would cost BT a lot, including the new wiring required and connection to the local exchange. As reconnections are currently (for how long now?) free then I can see that that reconnections are subsidised by new connections - maybe?
Quote:But BT wont up prices given that we are losing customers due to us being more expensive.
Is there anything else they can increase that they haven't already recently done?
As for BT losing customers then I can see this being only small as most people even though they may use another supplier for calls, still pay BT for linerental. So BT may lose some of theirprofits when this happens but if they didn't keep increasing them then it wouldn't be as bad.
The only time BT really lose customers must be those that take linerental and calls from a supplier like TalkTalk.