Impending Phone and Broadband Price Hike Announced by BT
December will not be a fun month for millions of BT customers who will be met with a price increase on their phone and broadband prices soon. The leading telecoms company is set to increase their prices for standard business landline line rental for all direct debit subscribers by £1, or 6.25%, to £16.99 from December 1, 2014. Additionally, the PPM or pence per minute rate for all calls to UK landlines and 0870 numbers will spike up to 6.44% from 9p a minute to 9.58p.
The whole set up charges for business landline calls is expected to increase from 15p to 15.97p. While, all residential calls made to the Timeline speaking clock will also have a surge from the usual 36.6p to 38.97p and call return will also increase to 21.19p, a 10p increase from the previous 19.9p rate.
The broadband charges will go us to as much as 6.49% percent, even though BT said its present in demand press and TV broadband bundles will remain the same price. But, the price of BT Basic, the cheap business landline plan for low income customers, will still be priced £5.10 monthly with applicable call allowances.
The majority of the customers are all on inclusive call packages and they are not required to pay the set up fees or the ppm charges, and BT further said that the call bills had dramatically dropped to 14% percent over the past five years. However, BT claimed that those customers under the Unlimited Anytime Calls plan would surely see the price increase by 6.43% percent from £7 every month to £7.45. BT’s recent move came after its rival telecoms Sky company announced that it will increase their tariffs on September 1, 2014.
Last month BT declared that its Premier League offering was helping it a lot in their competition with Sky as it grew their broadband and TV profits by a quarter. Moreover, BT said that it added a net 104,000 broadband clients in the three months towards the end of June, making a fourth successive period that BT has outperformed and outwitted its rival.
Consequently, BT will soon start its second season of a £738 million deal to screen 38 top flight games every year for the next three years to come which took over Sky’s reign of top flight football. BT has likewise paid some £897 million for the three year Champions League deal from year 2015. BT stated that their TV sport offering had helped boost their revenues in its consumer department, which were up to ten percent to £1.04 billion compared with the same period from last year, and their broadband and TV profits rose to 26% percent. There has been a marked increase on BT’s consumer division by twelve percent to up to £808 million owing to the costs of the sports broadcasts.
BT had made a bold move into football coverage last year as part of their strategy to improve its position in the broadband segment, by offering the TV access for free as part of a bundle for customers taking its internet as well as cheap business landline services.
Not too long ago, BT took a big leap back into the mobile phone market segment as they launched a brand new business services targeting the delivery of fixed line as well as mobile calls on the same device. BT intends to launch a mobile offering for the greater public by the end of its financial year.