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BT Increase Prices From 3/12/2011 (Read 34,029 times)
bigjohn
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BT Increase Prices From 3/12/2011
Aug 27th, 2011 at 1:37am
 
BT has announced it will be freezing prices until 2013, but it is putting some of them up  first.

Read more: http://www.thisismoney.co.uk/money/bills/article-2030561/BT-freeze-prices-2011--...

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« Last Edit: Aug 27th, 2011 at 1:40am by bigjohn »  

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sherbert
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Re: BT Increase Prices From 3/12/2011
Reply #1 - Aug 27th, 2011 at 6:48am
 
Pity they could not get the headline right Roll Eyes
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Re: BT Increase Prices From 3/12/2011
Reply #2 - Aug 27th, 2011 at 7:57pm
 
sherbert wrote on Aug 27th, 2011 at 6:48am:
Pity they could not get the headline right Roll Eyes


They have put it right now!
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Dave
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Re: BT Increase Prices From 3/12/2011
Reply #3 - Aug 27th, 2011 at 9:44pm
 
The headline reads: BT to freeze prices until 2013 – but it’s putting them up first

If there weren't a price increase immediately before a price freeze, then it would all be good news, would it not?

Of course, BT could have announced its price rise now, and then a month or so down the line announced the price freeze, thereby avoiding headlines like the above.
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Re: BT Increase Prices From 3/12/2011
Reply #4 - Aug 27th, 2011 at 11:32pm
 
So their wonderful Anytime plan will be going back up to £5 (almost), just a few months after it was reduced to £4.70? Makes you wonder why they bothered doing that... Oh wait, I know. It was to sweeten the pill of the 30p increase in line rental that took place at the same time (30p reduction on one, 30p increase on the other - you do the Maths). BT really do give with one hand while taking away with the other!

And their daytime call costs are getting beyond a joke now. 7.95p per minute, plus a connection charge of 13.1p per call? (13.1p?! Why not just make it a round 13p? Is that .1p of a penny absolutely *essential* for them in order to balance the books??? What penny-pinching cheapskates!). From December, a 30-minute geographic daytime call on BT will cost £2.52 - 12p more than the same call on some mobile operators (Tesco Lite, GiffGaff, etc), which charge 8p per minute with no connection fee. Another incentive for people to ditch their landline! (Come back "local rate", all is forgiven...)

Basic line rental will be £14.60 per month - that's £175.20 per annum. The poor sods who don't like paying by direct debit will have to pay £16.40 per month, because BT whack a penalty charge of £1.80 on it. (Previously £1.50, but it went up to £1.80 in January - thanks to our EU masters forcing them to charge VAT on the "payment processing fee", claims BT, but they could have just told them where to stick it.) Those people will be paying nearly a whopping £200 a year for their landline, with "free" calls only at the weekend.

It's so hard to believe that at the beginning of *last year*, BT line rental was £11.54 per month / £138.48 per annum. When the December prices kick in, it will have gone up by 26.5% in just 18 months.

I suspect the reason they're getting the latest increase in before the end of this year, rather than wait until the Spring as usual, is so they can brag about freezing their prices during the whole of 2012. Hurrah!

Oh well, I guess *someone* has to pay for their much-publicised roll-out of super-fast fibre-optic broadband! It's just unfortunate the most of those bearing the financial burden of it are pensioners, who make too few calls to justify going on the Anytime package, who don't trust direct debits and who *can't* go on 'Line Rental Saver' because they don't have the internet (paper bills are *out* with that option!) - and therefore won't reap the benefits of said broadband anyway.
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« Last Edit: Aug 28th, 2011 at 12:08pm by Trenod »  
 
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Dave
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Re: BT Increase Prices From 3/12/2011
Reply #5 - Aug 28th, 2011 at 12:38am
 
Trenod wrote on Aug 27th, 2011 at 11:32pm:
And their daytime call costs are getting beyond a joke now. 7.95p per minute, plus a connection charge of 13.1p per call? (13.1p?! Why not just make it a round 13p? Is that .1p of a penny absolutely *essential* for them in order to balance the books??? What penny-pinching cheapskates!).

The reason is because each call is rounded up to the next whole penny, so with a Call Set-up fee of 13 pence the minimum charge would be 13 + 7.95 = 20.95 pence which is rounded up to 21 pence.

But with a 13.1 Call Set-up fee, the minimum charge is 13.1 + 7.95 = 21.05 pence which is rounded up to 22 pence.


Trenod wrote on Aug 27th, 2011 at 11:32pm:
From December, a 30-minute geographic daytime call on BT will cost £2.52 - 12p more than the same call on some mobile operators (Tesco Lite, GiffGaff, etc), which charge 8p per minute with no connection fee. Another incentive for people to ditch their landline! (Come back "lo-call", all is forgiven...!)

I have pointed out elsewhere in the forum that the cost of BT fixed to mobile calls went up when they scrapped the separate weekend time period, making daytime and evening rates apply seven days a week. Then the Terminate the Rate campaign came along purporting to be the telephone consumer's friend, aimed at saving landline callers paying the hefty premiums to ring mobiles. The outcome earlier this year was that the cost of calling mobiles from BT lines fell, but they didn't re-instate the separate lower weekend rate.

As you say, take away with one hand and give with the other...
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SilentCallsVictim
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Re: BT Increase Prices From 3/12/2011
Reply #6 - Aug 28th, 2011 at 12:12pm
 
Trenod wrote on Aug 27th, 2011 at 11:32pm:
From December, a 30-minute geographic daytime call on BT will cost £2.52 - 12p more than the same call on some mobile operators (Tesco Lite, GiffGaff, etc), which charge 8p per minute with no connection fee. Another incentive for people to ditch their landline! (Come back "lo-call", all is forgiven...!)

This example is perfectly fair in isolation, however the important point is that those who regularly make any significant number of weekday daytime calls (through BT or any other provider) will not be paying per-minute call charges.

All providers now offer Call Plans and packages to offer an unlimited number of inclusive calls to "normal" numbers. It is for the customer to decide which plan best fits their pattern of usage and to choose accordingly. Those who rarely make weekday calls before 7 in the evening may well not select the Unlimited Anytime plan, being content to pay a penalty charge of 13.1p plus 7.95p per minute on the rare occasions when they go outside the terms of their chosen plan.

If the call example given was a very rare occurrence for the caller then the cost given would indeed be accurate. If not, then I would hope that the caller would be wise to the fact that it is only in exceptional cases that these type of costs should be incurred.

I push this point for two reasons. Firstly, I am keen that people subscribe to the best arrangements to meet their needs. Secondly, we need to see the cost difference between calls to 084 and Geographic Rate numbers in proper context. The penalty rate of 7.95 ppm may be greater than the premium rate of 5.105 ppm to call a 0844 g6 number from BT. It is however fairer to compare with 0 ppm and no call set up fee.
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Barbara
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Re: BT Increase Prices From 3/12/2011
Reply #7 - Aug 29th, 2011 at 9:05am
 
One other point about this (I have posted something related elsewhere) is how difficult this is for the very elderly or confused.   My father (90 & getting very confused) is on the BT Evening & Weekend package which is obviously not appropriate because, even though he may keep social calls to that, inevitably he has to make numerous daytime calls eg to doctors & hospitals.   I pointed this out to him & he said he recently rang BT & they told him he was on the best package!!   My reply?  Well, they would say that, it is the best package for BT but not for him!  I have written out some telephone use instructions the first being "go on the Anytime package"!  However, the serious point is that people who for whatever reason find it difficult to understand and keep up to date with these things can be suffering real financial hardship & there really ought to be some kind of publicity camapaign as a minimum to alert them and their relatives/carers.
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Re: BT Increase Prices From 3/12/2011
Reply #8 - Sep 2nd, 2011 at 11:18am
 
Efforts to campaign on the point raised by Barbara are well worthwhile.

Two issues are however currently holding me back.

Firstly, the comment that Unlimited Anytime is the "most popular" calling plan needs to be understood. One would take this to mean that it has more subscriptions than any of the other 3 alternatives: Unlimited Evenings and Weekends, Unlimited Weekends and BT Basic. The figures released do however leave this open to some doubt.

We are told that "Unlimited Anytime" has "more than 3.5 million customers", however the numbers of customers for each of the alternatives are not released. I have been told that BT has 10.5 million "residential accounts" and BT advises Ofcom that it has 11.8 million "residential exchange lines". Neither of these clearly indicate the total number of residential "customers" or Call Plan subscriptions, as a "customer" may have multiple accounts, lines or indeed Call Plan subscriptions.

A couple of years ago Unlimited Anytime was said to cover only 10% of residential subscribers, whereas it is now assumed to have more than 25%, probably very much more as the proportion of customers who qualify for BT Basic would surely be much smaller. I am not sure if BT customers are less likely to be out at work all day now than they were then, if the shift in the definition of "daytime" has made a significant difference or if those who make calls through other providers are now more often transferring their line rental also.

It could be that the doubling of the penalty charge (the cost of an otherwise inclusive daytime call) over a period of 2 years is finally having what I believe is the intended effect.

The definition of "most popular" should be enough to sustain a claim that the standard cost of a geographic call from a BT landline during the daytime is zero. I would however be much happier if all of the totals were released so that this could be seen more clearly.

The figure we really need is the proportion of BT customers who make anything more than the occasional non-inclusive geographic call during the "daytime". This is not only important to establish a basis for any claim about the "standard" cost of daytime calls, but also to indicate how important it may be to mount the campaign which Barbara proposes.


My second concern is detailed in the next posting.
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SilentCallsVictim
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Re: BT Increase Prices From 3/12/2011
Reply #9 - Sep 2nd, 2011 at 11:19am
 
... Further to the preceding posting, my second concern is over a charging error for customers who still subscribe to the "annually renewed" option for Unlimited Anytime. At some points this was the only (or cheapest) way of subscribing to Unlimited Anytime, although that has now changed.

At least one customer (myself) has been the victim of what have been acknowledged as charging errors under this option, even though the charges billed were as shown in the formal BT Price List!! I describe the two errors below.

For the tariff changes accompanying the change in VAT rate on 4 Jan 2011, BT announced that Unlimited Anytime was going from
£4.99
to
£5
per month - in the context of an increased VAT rate, this could have been seen as a price reduction. The price list (and my account) actually showed an increase (twice that necessary to accommodate the VAT change) from
£4.99
to
£5.20
per month, for the annually renewed option.

From 28 April 2011, the charge for Unlimited Anytime was said to be reduced from
£5
to
£4.70
. Those paying the standard rate for line rental should not have seen any overall difference, as this was increased by 30p per month on the same date (from £13.60 to £13.90). The total charge for the annually renewed version of Unlimited Anytime (including line rental) was however increased by 30p in the Price List - reflecting the line rental increase but not the compensating reduction in the Call Plan Fee!

The charge for the annually renewed Unlimited Anytime option therefore remained at
£5.20
, rather than enjoying a reduction.


To summarise - I was paying £5.20 per month (rather than £5.00) from January to April and £5.20 (rather than £4.70) from May onwards.

My account has been adjusted to reflect this historic over-billing, even though I have been billed in accordance with the published BT price list! I have been told that I will be billed correctly in future, even though I am still on the Annually Renewed option. I await a change to the BT Price List (!) and look forward with interest to my next account. We have no idea what will happen to the charges for this item on 3 December.


I have all the relevant Price List update references if anyone would like to go through them. These are not easy to follow as the basic charge for the Unlimited Anytime annually renewed option is shown there before the discount of £1 which historically applied to this particular option. With the older examples the rate is given with line rental included.

The current terms which apply to those committed to these contracts are shown in the BT price list at subparts 1 and 3 of Section 55; Part 3:Calling Plans - Unlimited Anytime Plan. Subpart 2 gives the current option. Subpart 4 is another old tariff which does not reflect current charges. The titles suggest that everyone who signed up for Unlimited Anytime before July 2009, and has not switched to another Unlimited Anytime plan in the meantime, is affected by this overcharge.

I am prepared to accept that on entering a commitment the terms may be frozen, so as to deny one the benefit of better terms that may subsequently become available. The terms cannot however be adjusted other than in line with announced changes, and if adjusted upwards there must be the option to alter the arrangements without penalty. Before 4 January 2011 there was no disadvantage associated with being on the old terms (other than being committed for a period of 12 months).

The terms for this option have been varied with complete disregard for BT's announced price revisions. Subscribers to this particular arrangement have not been notified of a price increase (in January) and they have been excluded from an announced decrease (in April).

Recent statements about the current charges are made without the necessary qualification to cover existing customers tied into different terms.


It would be interesting to know if any other forum members are on the same deal, and whether they too are being billed in accordance with the Price List, rather than the generally published rates.

I am told that there is nobody in BT who deals with discrepancies between published information and the formal price list in general. I am quite sure that many other BT customers will have been billed in accordance with the formal price list and may have had difficulty in getting someone to address the discrepancy with the published general price information. I have secured an adjustment to my account, however adjustments of this scale (totalling less than £10) are very easily achieved.

With a battle going on with Virgin Media at present over its compliance with the Standard Conditions (see this thread), I see it being properly even-handed to treat BT in the same way. I have therefore drawn BT's attention to the fact that I propose to take this matter to Ofcom also, once it has had a chance to address it properly.


Returning to Barbara's point - I would find it very difficult to actively promote a service, when it is known that it may be wrongly billed and the costs misrepresented.
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Re: BT Increase Prices From 3/12/2011
Reply #10 - Sep 2nd, 2011 at 1:48pm
 
I'm going to throw a spanner in the works.

Not everyone who has Anytime Calls is on the Anytime Calling Plan. I am on the Evening & Weekend Calling Plan with Anytime Calls.

Apparantly it's not possible to select voice and broadband options independently of one another. The combination I required wasn't available to order online (the Broadband packages only has certain combinations), so I had to speak to an agent about it.

All I wanted to do, I thought, would be simple; change broadband option whilst leaving the Anytime Calling Plan as it was. Of course, the solution of the Evening & Weekend Calling Plan with Anytime Calls achieves the same result, but why make it so complicated?  Roll Eyes

Following this, I was concerned that I was on the Evening & Weekend Calling Plan as that was what it says when I log in to My Account.

I was directed to the PDF booklet that gives all the residential charges:
http://www.productsandservices.bt.com/consumer/assets/downloads/BT_PhoneTariff_R...

If you go to page 32 (page 34 of the PDF), you will see a table giving the perminations of voice and broadband options, along with the Add-Ons in the bottom left. For example, there is an "Unlimited Anytime Add-on when selected with a Package containing Unlimited Evening & Weekend Plan".


On the subject of the billing error, the fact that even the providers can't get their heads around the prices speaks volumes!  Roll Eyes

So in practice what happens when there is a billing error is that it is only put right when noticed by someone who understands like SCV. Do all other customers who have been affected get an appropriate refund? As a matter of principle I say that they should.

I wonder in practice, how common these sorts of errors are. Also, what about the number that do and don't get noticed?
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Re: BT Increase Prices From 3/12/2011
Reply #11 - Sep 3rd, 2011 at 4:49pm
 
Dave wrote on Sep 2nd, 2011 at 1:48pm:
I'm going to throw a spanner in the works.


A sizeable spanner - I note that Unlimited Evenings and Weekends is cheaper that Unlimited Weekends, however the add-on charge for Unlimited Anytime is £5, not £4.70 as currently declared and advised to customers as a price change due to occur on 28 April.

Dave wrote on Sep 2nd, 2011 at 1:48pm:
I wonder in practice, how common these sorts of errors are. Also, what about the number that do and don't get noticed?


BT can charge whatever it likes - this is not actually a billing error as the bills have been in accordance with the published Price List. The General Conditions exist to protect all consumers from improper action by imposing a requirement for all price declarations for standard arrangements to be clear and up to date. I am waiting for BT to provide me with its justification of how it has declared the relevant prices to me and others before referring an alleged breach of General Conditions to Ofcom.

The price given for the 12 month renewable contract for Unlimited Anytime on p2 of the pdf tariff booklet is not the same as that given on the BT Price List. A quarterly charge of £55.80 including line rental is given, but this works out at £4.70 per month for the option. This is correct for the standard ("non-renewable"!) option shown at Subpart 2 of Section 55; Part 3:Calling Plans - Unlimited Anytime Plan.

The 12-month renewable option is covered by subparts 1 and 3  - giving the option fee as £6.20 per month + line rental, with a £1 per month discount = £5.20.

BT may point out that although this booklet is presented to existing customers, it is only for the purposes of general guidance, as it relates to terms made available to new customers - "Getting a Residential Phone Line". This is however rather odd as the Price List indicates that the 12-month renewable option is "not available for new supply"!
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Re: BT Increase Prices From 3/12/2011
Reply #12 - Sep 4th, 2011 at 7:28pm
 
SilentCallsVictim wrote on Sep 3rd, 2011 at 4:49pm:
BT can charge whatever it likes...
It can and does and thanks to Ofcom for removing BTs restrictions do we now get price increase after price increase and it's now becoming common place to have several increases in a short space of time (like a year).

Although there are other companies providing line-rental services, the major ones just copy of BT so really there isn't much competition happening.

TalkTalk have already announced their price increases so it wont be long before others follow.

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Re: BT Increase Prices From 3/12/2011
Reply #13 - Sep 4th, 2011 at 7:40pm
 
SilentCallsVictim wrote on Sep 3rd, 2011 at 4:49pm:
Dave wrote on Sep 2nd, 2011 at 1:48pm:
I wonder in practice, how common these sorts of errors are. Also, what about the number that do and don't get noticed?


BT can charge whatever it likes - this is not actually a billing error as the bills have been in accordance with the published Price List. The General Conditions exist to protect all consumers from improper action by imposing a requirement for all price declarations for standard arrangements to be clear and up to date. I am waiting for BT to provide me with its justification of how it has declared the relevant prices to me and others before referring an alleged breach of General Conditions to Ofcom.

If bills have been in accordance with the published price list, then what is the issue? Is it that customers have not been notified, e.g. by letter or in BT Update?  Huh
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Re: BT Increase Prices From 3/12/2011
Reply #14 - Sep 5th, 2011 at 6:43am
 
Dave wrote on Sep 4th, 2011 at 7:40pm:
If bills have been in accordance with the published price list, then what is the issue? Is it that customers have not been notified, e.g. by letter or in BT Update?  Huh

The BT Price List is but one of the means by which BT communicates its prices to customers. Specific price change announcements through bt.com and by email (and BT update for those who pay for the privilege of receiving it) would be expected to provide the clearest guidance as they are the most direct. The published "Tariff Guide" is also presented as being a reliable source of information.

Where a service is provided under many different terms there is a problem in that the customer cannot readily verify which of the various terms applies to themselves, as there is no consistent form of referencing used (e.g. a product code). If one sees an unqualified reference to the "Unlimited Anytime Plan" and the associated price, there can be no reason to believe that this may not relate to one's own subscription to this plan.

In this case, those committed to Unlimited Anytime on a 12 month renewing contract were paying the same price (£4.99 per month) as other subscribers to the Option. On 4 January 2011, they suffered an unannounced price increase (in excess of that necessary to accommodate the change in VAT rate) whilst others enjoyed a decrease in the VAT-exclusive price. The bizarre and exceptional nature of such an adjustment - increasing a price during a period of commitment, whilst the standard price decreased - surely demanded not only a declaration, but some explanation.

I believe it is fair to assume that customers will be guided more clearly by major announcements, emails and the "Tariff Guide" than by revisions to the (close to incomprehensible) Price List. That is the basis for my contention that GC 10 has been breached.
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