Landline phone prices review launched by Ofcom

Soldato
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Personally I welcome this as my line rental has gone from £138 to over £170 in the space of 12 months. I simply cannot, at this point, afford to pay for 12 months up front. It's ludicrous that we're being charged extortionate rates considering the wholesale price.

http://www.bbc.co.uk/news/business-38166781

Telecoms regulator Ofcom has launched a review of landline-only rental prices after concerns that people may not be getting value for money.
It said landline prices have risen by up to 41% in real terms since 2010, while wholesale prices have fallen by a quarter.

The rise in rental prices particularly affects those who rely on landlines, such as the elderly, Ofcom said.

The review will decide whether measures are needed to protect them.
The worst offenders are Sky, which has raised landline prices by 41% in real terms over the last six years, and Virgin Media, which has raised prices by 38%.

...snip...

The most expensive provider for landline-only services is currently Virgin Media, at £19 a month, followed by BT at £18.99, according to Ofcom.

All in all it's thought around 10% of households in the UK do not have broadband or television packages.
 
Soldato
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It isn't the company with the (virtual) monopoly increasing the costs. They (Openreach) aren't the bad guys in this.

It must be a great earner for Virgin. Their line rental is as high as any other provider but they get the keep all of the money.
 
Soldato
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As above, the wholesale price has come down, it's just a cash cow for the ISPs.

Doesn't matter as long as you factor in the total 'lifetime' cost of the contract when shopping around, the problem is it can mislead people who just look at the headline rates. Also it's unfair to those who just use a landline as they're subsidizing the internet users.
 
Soldato
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I can just imagine now the same thing will come from this, that came from ISPs having to advertise a single headline price (including LR) now...

Was £30pm includes £18.99 line rental.
Now £35pm includes £11.99 line rental.

They do what Ofcom ask, but then just increase their costs another way. :D
 
Associate
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I feel line rental is a blatant way of milking customers for cash (as has already been said) originally a charge for the use of land lines (how many people have those these days) then it seems to have evolved into a maintenance fee for broadband and tv services that get piped into your house.

I have lived in the US for over a year now and have broadband service of 100mb for $49. no line rental at all....the cost of line rental / maintenance should be included within the cost of the service and not a separate fee that can be arbitrarily increased at any point.
 
Soldato
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I can just imagine now the same thing will come from this, that came from ISPs having to advertise a single headline price (including LR) now...

Was £30pm includes £18.99 line rental.
Now £35pm includes £11.99 line rental.

They do what Ofcom ask, but then just increase their costs another way. :D

I have no issues with paying what is a fair price for the service provided, if I was a land line only customer I would be annoyed off I was subsidising the internet for others.

I feel line rental is a blatant way of milking customers for cash (as has already been said) originally a charge for the use of land lines (how many people have those these days) then it seems to have evolved into a maintenance fee for broadband and tv services that get piped into your house.

I have lived in the US for over a year now and have broadband service of 100mb for $49. no line rental at all....the cost of line rental / maintenance should be included within the cost of the service and not a separate fee that can be arbitrarily increased at any point.

You still need the land line for ADSL internet which most of us use.

Your joking right? Generally the USA get completely milked on their fixed line and mobile services, 100mb for $49 is rare and not representative of whats available to the vast majority of the country. The cost and the speed is a complete postcode lottery.
 
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Caporegime
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It would be good to see a copper pair come in at sub-£10 to the end user (inc. VAT) where required for VDSL. Take dial tone off it, remove any legal requirement for emergency calls to be able to be made over it so that no "legacy" exchange kit needs to be maintained and only the length from the cabinet to your house is used if you need to save money.
 
Associate
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I have no issues with paying what is a fair price for the service provided, if I was a land line only customer I would be annoyed off I was subsidising the internet for others.



You still need the land line for ADSL internet which most of us use.

Your joking right? Generally the USA get completely milked on their fixed line and mobile services, 100mb for $49 is rare and not representative of whats available to the vast majority of the country. The cost and the speed is a complete postcode lottery.

True before i swithced providers I was using and adsl connection which did cost more than what im using now but my point is that people are still being charged for line rentals even on fibre lines in the UK...am i correct?

Regarding the broadband lottery. the price I pay is representative for most of the country, IF they can get those speeds, much like the UK....the built up areas get the same deals but in the rural areas where they dont have the infrastructure you get lower speeds and less choice, no different than in the uk.

Gigabit speeds are a different thing, pricing and competition is a **** show over here and its disgusting, you can get gigabit speeds in areas of chicago for 70$ but in other areas it can be as much as 300$ just because there is no competition...thats where it becomes a joke
 
Soldato
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True before i swithced providers I was using and adsl connection which did cost more than what im using now but my point is that people are still being charged for line rentals even on fibre lines in the UK...am i correct?

Regarding the broadband lottery. the price I pay is representative for most of the country, IF they can get those speeds, much like the UK....the built up areas get the same deals but in the rural areas where they dont have the infrastructure you get lower speeds and less choice, no different than in the uk.

No your not quite correct, in the UK 'fibre' is a complete con, the last mile is over copper and it uses VDSL technology through a standard phone line. The actual fibre terminates at the box at the end of the street and is refereed to as FTTC.

True 'fibre' or FTTP is rare and retrofitting it is expensive. Big tower blocks where its viable to get it retrofitted have it and a few new builds. But for everyone else its so rare its not even worth thinking about it.

It is possible to get cable in the big towns and cities but there hasn't been much expansion of the network for a long time. If you are in a cable area you can just buy internet on its down, but its only a couple of £ cheaper than getting a phone line bundled in also.

Getting the speed is the big IF though and most don't get the speeds. The average broadband speed in the USA is slower than the UK so 100Mb for $49 is not representative. Also does this also include sales tax? All UK prices would.

It also costs far more than a typical 76Mb FTTC service does here which bundled with a phone line that includes free evening and weekend calls costing £28/month.

A Cable internet only subscription costs £32/month for 100Mb, hence why I said you get milked. Mobile contacts are far worse for this.

It would be good to see a copper pair come in at sub-£10 to the end user (inc. VAT) where required for VDSL. Take dial tone off it, remove any legal requirement for emergency calls to be able to be made over it so that no "legacy" exchange kit needs to be maintained and only the length from the cabinet to your house is used if you need to save money.

That would only work for the few people that don't use their land lines and wouldn't actually save any money as most people still use their land lines. Another problem comes when you move house and the next person wants a land line.

You need to think of line rental as a network maintenance charge not a charge for a phone line. It's just the same as the standing charge for water and gas etc. What is wrong is front loading phone only customers to make the internet prices look more competitive or 'free'.
 
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Soldato
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Vodafone have removed line rental on all their broadband packages. Makes them quite attractive now.

The pricing however isn't that different. While it's advertised as "no line rental" the price in comparison to other suppliers is pretty much the same. I currently pay £30 p/m all in with PlusNet and looking at the Vodafone 76 package, it's £28...it's all advertising!!
 
Soldato
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Vodafone have removed line rental on all their broadband packages. Makes them quite attractive now.

Yes and no.
£28 for the "up to 70mb" package all in is a very competitive price.
However if you want to use your own equipment with the service - so your own router etc. then no, steer clear!
 
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