I think it's entirely fair to criticise OFCOM! They are there to regulate the industry and promote healthy competition to benefit the consumer.

The cynical manipulation of line rental charges in order to keep headline broadband prices down is scandalous and the cartel behaviour of the main players deserves investigation.

Believe it or not there are many phone users in this country who have no interest in broadband and they're most likely to be BT Retail customers. OFCOM's cosy acceptance of line rental pricing does nothing for these customers so they're unwittingly subsidising the broadband users of this country.

In reply to a post by Oliver341:

Ofcom have only failed if they haven't done something which is within their power. Imposing price restrictions on private companies operating within a competitive market goes way beyond what Ofcom have powers to do.

As far as I'm aware, Ofcom do have powers to impose price caps - and if they don't, then they clearly need them as a matter of urgency.

At the moment, the ADSL market is not a competitive market - it is collaborative, and the victims of that collaboration are the public.

BT sets its line rental price (& PlusNet's) - and, broadly, everyone else follows suit.

In reply to a post by gordon_k:

As far as I'm aware, Ofcom do have powers to impose price caps - and if they don't, then they clearly need them as a matter of urgency.

Only at exchanges where BT has a monopoly, hence all the Market 1/2 and Market A stuff. The rest of the areas are considered deregulated and open to the free market. Openreach is also subject to price controls in the areas of their business where they have a monopoly.

In reply to a post by gordon_k:

BT sets its line rental price (& PlusNet's) - and, broadly, everyone else follows suit.

Matters of price fixing can be referred to the Competition and Markets Authority, but it's notoriously difficult to prove, especially given that much of the telecoms market runs on pretty tight profit margins as it is.

I see them as failed yes because their aim was to decrease retail prices with the change, which clearly hasnt happened. They would have been better of leaving wholesale pricing alone if they were not prepared to take it all the way.

In reply to a post by gordon_k:

True, but I do see BT as responsible for the issue at hand - i.e. PlusNet's 41% increase in annual line rental over the past 12 months.

Incorrect.

From 2 September 2014 to 2 September 2015 is 19.25%.

Yep, I've fallen foul of it this year, for the first time. Think I could have renewed "early" from the 12th onwards, but each year it's been creeping forward by a few days/weeks, so I knew I would eventually be unable to avail myself of the "old" prices.

Edit: if my maths is correct, the changes also halve the saving for signing up for a whole year from £36 to £18.

Not sure I want to pay a whole year up-front to save just £18, although it would have been worth it if I still secured the current prices.

Edit again: I suppose at least it would give me an element of protection from next year's annual price hike. If it's likely to come round in September again, or even creep forward to August, in line with the trend of recent years, but my line rental renewal is not until December, I could potentially benefit from up to four months' price-hold after it's gone up for monthly payers.

If I believe the price will go up again (no reason to think otherwise, as the pattern is it always has), the actual saving might be more than £18, but is not quantifiable without taking a guess at when they'll next rise prices, and by how much. If it's August (2016), by £1, I save an extra £4, taking it to £22. Hmmm. Big deal. Still not sure it's worth it.

What happens in the unlikely event line rental actually goes back down, due to aggressive competition? I suppose those who took the annual LRS are locked into the deal they agreed, whereas everyone else gets the reduction immediately.

Edited by TLM (Sat 11-Jul-15 11:30:05)

For most people who joined Plusnet more recently, moving to LRS also loses you free Evening and Weekend calls.

I think those are protected for me, because I already had them some years ago, when I first had LRS. But obviously something to check.

Also an argument for NOT letting LRS lapse, because if I want to opt back in at a later date, it will probably be on inferior terms.

In reply to a post by adslmax:

In reply to a post by camieabz:

I suppose if BT want to compete with Sky for sports TV, they will have to raise their basic packages too (i.e. line rental).

They not allow to do that. What if we don't have any sky sports or bt sports

http://www.thinkbroadband.com/news/7064-bt-sending-o...

I did notice Line Rental Saver (saving cost have been reduced over the years now)

I remember my first LRS with BT saving of £67 a year off, then PN saving of £59.52 a year off and now PN only get a saver of £18 a year.

I just wondering why is LRS saving cost is massive drop in saving cost is disgrace! As LRS saver is not worth it anymore.

Edited by adslmax (Mon 27-Jul-15 15:58:09)