BT slashes pricesMillions to benefit from price cuts

01 August 2006

 

A close-up of a telephone cord a man is using to make a call.

BT has slashed phone bills for millions of its customers by up to a third after regulator Ofcom ended official caps on the company's charges.

The company’s fixed-price packages, in which customers make calls for a flat-rate monthly fee, will see prices slashed by up to a third.

But it’s not such good news for customers not signed up to BT’s inclusive deals. The phone giant is bringing in per-minute call charges to replace per-second charges. For example, a call lasting two minutes and two seconds would be rounded up and charged as three minutes.

Call packages

The 1.6 million households signed up to BT Together Option 2 (evening and weekend call package) will see their monthly bill drop from £5.50 to £3.95, while the 600,000 on BT Together Option 3 ('any time' call package) will see their monthly £14.50 bill cut to £9.95.

From the end of the year, BT’s 16 million customers will be offered a 25p discount to their monthly line rental if they opt to receive bills online, while the cost of calling 0845 and 0870 will also be cut by October.

Ian Livingston, chief executive of BT Retail, said: ‘We've reduced prices by over £1 billion in the last decade and now our customers have the chance to save even more. The simplification of our tariffs combined with very popular services like Privacy and Voice Text mean that you'll get much more for your money if you are a BT customer.’