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BT Price changes from 1/8/2006 (Read 72,008 times)
orsonkart
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BT Price changes from 1/8/2006
Jul 31st, 2006 at 4:01pm
 
BT Together Option 2 and 3 customers will see prices slashed by almost a third. From  tomorrow, the monthly price for the evening and weekend call package (Option 2) will fall by 28% to £3.95 and anytime calling package customers (Option 3) will see a 31% cut to £9.95.
Meanwhile, BT is also introducing price changes that will be offered to all its customers. From 15th August, BT will be offering a year’s free UK evening and weekend calls if they sign-up to BT for 18 months.



Full details here http://www.btplc.com/News/Articles/Showarticle.cfm?ArticleID=e3cd7070-a172-4c69-...


Still a few cheaper  suppliers then them,without having to sign long contracts.

~ Thread title edited by Dave
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« Last Edit: Aug 1st, 2006 at 2:48pm by Dave »  
 
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kk
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Re: BT cut prices of call packages from 1/8/2006
Reply #1 - Jul 31st, 2006 at 5:13pm
 
Big Deal!

0870 will be reduced from7.51ppm to 7ppm (daytime), but a 3p connection charge will be added.  [but I paid 7ppm anyway ??]

0845 will stay the same (daytime)  (3ppm), but a 3p connection charge will be added.

The above numbers account for 25% of all call time.
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« Last Edit: Jul 31st, 2006 at 5:18pm by kk »  

KK
 
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orsonkart
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BT to cut cost of calls to 0845/0870.
Reply #2 - Jul 30th, 2006 at 8:25am
 
See this article in todays Sunday Times.

http://www.timesonline.co.uk/newspaper/0,,176-2290873,00.html
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bbb_uk
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Re: BT to cut cost of calls to 0845/0870.
Reply #3 - Jul 30th, 2006 at 9:04am
 
That's good news except I can't see them reducing the 0870 that much because of the revenue generating that operates beneath them.  These numbers do cost more for teleco's to carry due to the revenue sharing.

BT have specifically chose these numbers knowing that in most cases other teleco's can't match them because of all the money the teleco's have to pay to carry the calls.

BT could reduce their cost to geographical numbers if they wanted but so far don't appear to want to do this which I assume is because they know their competitors can generally price-match or beat BT on their geographical calls but can't on NGN's like 0845/0870.  This is crafty of BT to choose 0870 to reduce knowing that most of their competitors can't price-match them or beat them on these calls but at least it's a start!

When the revenue sharing officially ends on 0870 then I suspect that BT will also bring down the cost of these calls to match geographicals and hopefully include them in existing plans, etc similar to the new 03x range.

BT will use headlines like they've specifically chose this number because they are so much to call - hiding the fact that they have chose this number because their competitors charge more (for which they'll highlight) and, as mentioned above, they can't compete with in most cases.

Quote:
We spend a quarter of our time on the phone on these numbers, according to BT
I personally would have said it's more than a quarter of our time as these numbers are everywhere.  Just go through the magazines that come in the papers and TV shopping adverts and you'll see most numbers are 0870.
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« Last Edit: Jul 30th, 2006 at 9:10am by bbb_uk »  
 
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Re: BT to cut cost of calls to 0845/0870.
Reply #4 - Jul 30th, 2006 at 9:17am
 
Something similar has been mentioned in the Telegraph here, and from it I
Quote:
Ben Verwaayen, the chief executive of BT, has repeatedly stressed that the company does not intend to compete with its low-cost rivals on price. This autumn it will launch BT Vision, which will offer customers video on demand over the internet
which seems to contradict things a bit.

I guess we'll just have to wait and see.....
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« Last Edit: Jul 30th, 2006 at 9:18am by bbb_uk »  
 
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lompos
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Re: BT to cut cost of calls to 0845/0870.
Reply #5 - Jul 30th, 2006 at 9:33am
 
No mention of 0871 and 0844 in the announcement.

Cheaper 0870 will speed up migration to 0871.

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kk
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Re: BT to cut cost of calls to 0845/0870.
Reply #6 - Jul 30th, 2006 at 4:41pm
 
Thanks for the post orsonkart.

This will be a useful article to enclose with any complaint sent to an organisations in respect of their use of 087/084 telephone numbers.
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idb
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Re: BT to cut cost of calls to 0845/0870.
Reply #7 - Jul 31st, 2006 at 5:11pm
 
0845:
Before (day/evg/weekend)
3p/1p/1p

After
3p/1p/0.5p  

0870:
Before
7.51p/3.75p/1.5p  

After
7p/3.5p/1.5p

summary - hardly any difference.
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As from November 21, 2013, I no longer participate in the forum and am unable to receive private messages.
 
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bbb_uk
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Re: BT cut prices of call packages from 1/8/2006
Reply #8 - Jul 31st, 2006 at 5:41pm
 
Some increases at the same time (to be expected) as the very slight reductions in 0845/0870 call costs and reductions in Together Option 2/3 plans.  They are:-

Call Set-up Fee
From 1st October 2006, the minimum call charge of 5.5p for residential customers will be replaced by a call set-up fee of 3p that will be charged at the start of each phone call.

The call set-up fee will be applied to national and local geographic calls, premium rate calls, NTS calls (e.g. 0845, 0870), international calls and landline-to-mobile calls. However, it will not apply to zero-rated calls included in BT Together Option 2 and 3, BT Together Local Calls Option or Evening and Weekend UK geographic calls of up to an hour for Option 1 customers for which a charge of 5.5p per call will apply.

The new call set-up fee will apply to all customers on the Light User Scheme (LUS). The LUS rental rebate and threshold will be adjusted in the customer's favour to ensure customers continue to benefit from these services and that their bills do not increase by more than the rate of inflation as a result. For customers on In-Contact Plus, the 10p minimum call charge will be replaced by the 3p call set-up fee. More details on this can be found at bt.com/pricing.

Landline-to-mobile Price Changes
From 1st October 2006, BT will simplify its landline-to-mobile rates for residential customers by introducing just three rates which will replace existing landline-to-mobile tariffs. Landline-to-mobile rates during the Daytime will be 13ppm (inc VAT), during the Evenings, they will be 8ppm and during the Weekend, they will be 5ppm (inc VAT). These rates will apply for calls to ALL mobile networks (except Hutchinson 3G) and will make it easier for you to manage your calls. Not only does this change make our pricing easier to understand but also ensures our prices remain among the most competitive in the market.

Reductions in 0870 and 0845 rates
From 1st October 2006, the call rates for residential customers making 0870 calls will be reduced to 7ppm from 7.51ppm in the daytime, reduced to 3.69ppm from 3.75ppm in the evening and remain at 1.50ppm at the weekend. 3p set-up fee applies. Also, the call rates for residential customers making 0845 calls will be reduced to 0.5ppm from 1.5ppm at the weekend and will remain the same at 3ppm in the daytime and remain the same at 1ppm in the evening. This change will mean our 0870 call rates are among the most competitive in the market.

Whole Minute Charging
From 1st October 2006, each call will be rounded up to the next whole minute for national and local geographic calls, international calls and landline-to-mobile calls. Minute rounding will not be applied to NTS calls or premium rate service calls and existing rounding rules will apply to these numbers. Calls made by In-Contact Plus customers will also be subject to this pricing, as will calls made by LUS customers. The LUS rental rebate and threshold will be adjusted in the customer's favour to ensure customers continue to benefit from these services. Other calls like 5.5p Evening and Weekend geographic UK calls on BT Together Option 1, any calls made within the inclusive calls packages on BT Together Option 2 and 3 and BT Together Local Calls Option will not be affected. For full details of which call types will be charged by the whole minute, visit bt.com/pricing.

More info here.
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« Last Edit: Jul 31st, 2006 at 5:53pm by bbb_uk »  
 
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bbb_uk
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Re: BT cut prices of call packages from 1/8/2006
Reply #9 - Jul 31st, 2006 at 5:48pm
 
One of the main increases is the minimum call charge has been replaced with a call connection fee (or setup fee to use BT's words).  This means that the cost of any chargable calls you make with BT WILL increase compared to what you were paying before for that exact same call.

It also means that other teleco's will now (or eventually) follow BT by example and charge to a connection fee/call setup fee so they are then "inline" with BT.  That is, except, Telewest/NTL who already have a connection fee.
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« Last Edit: Jul 31st, 2006 at 5:53pm by bbb_uk »  
 
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Dave
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Re: BT cut prices of call packages from 1/8/2006
Reply #10 - Jul 31st, 2006 at 6:10pm
 
bbb_uk wrote on Jul 31st, 2006 at 5:41pm:
Whole Minute Charging
From 1st October 2006, each call will be rounded up to the next whole minute for national and local geographic calls, international calls and landline-to-mobile calls.

Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked

So a connected call to an answering service will cost 3p + whatever pence per minute. Indeed, the minimum call charge will still apply in so much as it will be 3p + the amount for the first minute. If calls on Option 1 stay at 3p/min in the daytime, that's a 3p minimum charge. As usual, what appears at first to be good, is in fact a disguised increase of 0.5p per call that lasts 1 minute or less.

This is disgusting and only happens because of the completely weak regulation that we have come to expect here in the UK. A 1 minute 1 second call will cost the same as 2 minutes! In the days of mechanical phone systems I could acept this, but in today's high-tech electronic age, there's no excuse.  Angry

The industry is always busy devising ways of lessening pricing transparancy. I believe that the elderly, especially, will not understand the difference between billing to the nearest second and to the nearest minute.
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Re: BT cut prices of call packages from 1/8/2006
Reply #11 - Jul 31st, 2006 at 6:15pm
 
So with the "setup fee" and whole minute rounding, the minimum cost of a daytime 0870 call will be 10p, as opposed to 5p. That's an increase of 50%!

The only good news in the new prices is the reduction in 0845 rate at the weekend. That will be useful for people I know still on dialup, until all the ISPs have moved to 0844, that is.

I would like to analyse the change in calls to mobile pricing in detail but don't have time. The cost to some mobiles has increased. However, I have to applaud the simpler pricing structure as I have previously gone to look up the prices before calling (I knew someone who had phones on two networks, and one was cheaper in the evening, and the other at the weekend!!)

I wish they would simplify the pricing of calls to 0844 numbers now, where the cost can depend on the 7th digit (8th is you count the leading "0")!
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Re: BT cut prices of call packages from 1/8/2006
Reply #12 - Jul 31st, 2006 at 6:23pm
 
jrawle wrote on Jul 31st, 2006 at 6:15pm:
So with the "setup fee" and whole minute rounding, the minimum cost of a daytime 0870 call will be 10p, as opposed to 5p. That's an increase of 50%!

Whole minute charging will not apply to 08 NTS.

Whole minute charging is just another tool in BT's arsenal which is pushing low users up the scale. Those on BT Together Option 1 are now even more likely to consider moving up to Option 2 or 3 or move to another provider. The point is that the price differential between the packages is now closing because the cost of basic line rental has been pushed up that much. At the same time, the higher packages are falling.
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« Last Edit: Jul 31st, 2006 at 6:34pm by Dave »  
 
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Re: BT cut prices of call packages from 1/8/2006
Reply #13 - Jul 31st, 2006 at 6:52pm
 
I would love to know what Talktalk plan on doing because they promise to be cheaper then BT and with these new prices BT will be cheaper. I hope this means a price war between the companys Smiley
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Why not visit www.thatfreebie.com Smiley and enjoy freebies Smiley
 
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bbb_uk
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Re: BT cut prices of call packages from 1/8/2006
Reply #14 - Jul 31st, 2006 at 7:10pm
 
Dave wrote on Jul 31st, 2006 at 6:10pm:
bbb_uk wrote on Jul 31st, 2006 at 5:41pm:
Whole Minute Charging
From 1st October 2006, each call will be rounded up to the next whole minute for national and local geographic calls, international calls and landline-to-mobile calls.
So a connected call to an answering service will cost 3p + whatever pence per minute. Indeed, the minimum call charge will still apply in so much as it will be 3p + the amount for the first minute. If calls on Option 1 stay at 3p/min in the daytime, that's a 3p minimum charge. As usual, what appears at first to be good, is in fact a disguised increase of 0.5p per call that lasts 1 minute or less.
I never spotted that as I never read the "Whole Minute Charging" thing.

It does appear that effectively, a very quick call or the call answered by voicemail could, depending on time of day, cost 6p (3p connection fee + 3p for the first minute).

Although this doesn't include NTS numbers, I do believe overtime they will.
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« Last Edit: Jul 31st, 2006 at 7:11pm by bbb_uk »  
 
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