Firstly, darkstar, I would like to apologise for the comments about you by NonGeographicalMan.
darkstar wrote on Jul 22
nd, 2006 at 7:45am:
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....
But the price BT Retail pays is the one BT Wholesale sets. Thus, if BT Wholesale makes a profit and BT Retail does not, then BT as a whole is still profitting. Indeed, its competitors like TalkTalk are put into the same boat as BT Retail, i.e. they pay the same amount for their service and have to compete. So perhaps it's in BT's interest for the profit to be in BT Wholesale rather than BT Retail. The thing is though, putting whether they are making a loss or a profit aside for a moment, these price increases must surely make BT more profitable at the direct expense of Joe Public.
Getting back to the making a loss thing; the other side of the coin is that companies charge far more than it actually costs them for a service. For example, a pair of Nike trainers that retail at £80 don't cost anywhere near that to manufacture. It's the name that's being paid for.
So when services like the call return element of 1471 or caller display are charged at an exorbitant amount, I feel that we are being held to ransom by greedy companies just out for profit.
The competition, we have been told, will reduce prices. But I do not believe that this is what is happening one bit. Granted, inflation is always a factor, but that does not excuse the introduction of charging for elements that were previously free. They also seem to have plenty of money to throw at marketing people to create illusions that prices are being simplified and that they are making such changes after consulting the customer.
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.
But in BT's effort to "simplify" packages, you can tell them that until the cows come home! The elderly, especially, do not understand that certain calls are not charged according to their length. Trying to explain that you have to redial after an hour means little to my Grandma. Inflating the pence per minute after 1 hour by 300% is an underhand way of profiting after establishing this particular part of the tariff.
Another such example is BT Together, which originally charged all calls on a per minute basis. For the equivalent of £1.80 per month over BT Standard, you could have BT Together rates. Then evening and weekend geographical calls were made 6p for upto 1 hour. So short calls (lasting less than 2 minutes) were actually cheaper in the daytime! Now it became clear as to why BT Answer 1571 and other answering services could be provided for 'free'. With the new BT Together, the inclusive call time was quietly dropped. The marketing people obviously forgot to make a song and dance about the removal of £2.40 worth of inclusive call time that was present in the old BT Together.
I felt that this was a very underhand way of slipping in a price increase for those who used the phone less. And by keeping the name of the package, people would have felt comfortable with it; that prices were being simplified/reduced, when that wasn't necessarily the case. As competition has taken hold, this has set the tone for the types of illusions created by the whole industry.
In a similar fashion, it meant that the terms "peak" and "off-peak" could not be used, as a "peak rate" is, by definition, higher than an "off-peak" rate. Again, how many people have cottoned on to this?