BT Increases Prices: No Escape If You’ve Paid for Line Saver

Written by Karen Bryan

BT logoOn 3 July 2016 BT is imposing massive prices increases of up to 15% on some broadband packages.

How can BT possible justify prices increases of up to 15% when the rate of inflation, measured by CPI (Consumer Price Index), stands at 0.3%?

In late January 2016, I signed a 12 month contract for broadband and anytime calls with BT  Although technically I can leave the BT contract with no penalty due to the impending price increase, I am tied into the 12 month contract by virtue of having paid for Line Saver (where you pay 12 months line rental in advance in order to get a discount on the price). Unfortunately, you can’t get a refund on the unused portion of Line Saver if you quit your BT mid contract.

If I hadn’t sign up for Line Saver, then I would’ve paid around another £2 a month for line rental for the 5 months prior to the price increase. Now that I am effectively tied into staying with BT for a further 7 months after the price increases, I will pay an additional £1.85 a month (a £1 increase for broadband and 85p for anytime calls).

There appears to be no escape from these price hikes. You either pay more for line rental, so that you can quit the contract if prices increase, or you save on line rental, but are then hit by price increases for broadband and calls.

BT is not the only culprit. Many of the other major home telecoms and broadband providers such as Sky, Virgin and Talk Talk have already, or will soon, hike their prices too.

I think that telecom companies should be banned from increasing prices during a 12 month contract.

I can sign up for a fixed price contract for supply of gas and electricity which guarantees that the price will not increase during the term of the contract. Why can’t I do that with a telecoms and broadband contract?