Ofcom: BT To Cut Charges By GBP 7/month For Upto 1 Mln Landline-only Customers

(RTTNews) - Office of Communications or Ofcom announced Thursday that customers of BT Group plc (BT_A.L, BT), who buy only a landline telephone service will see their monthly bills slashed by 7 pounds per month, following an Ofcom review.

In a statement, Ofcom said it has been concerned that telephone line rental prices have risen, despite wholesale costs falling. Following a review of this market, in February this year the agency set out firm proposals to cut monthly bills for BT's landline-only customers by between 5 pounds and 7 pounds.

In response, BT has agreed to Ofcom proposal in full and is reducing its monthly line rental price by 7 pounds, from April 2018, for its customers who take only a landline from BT.

These landline-only customers - who currently pay 18.99 pounds per month for line rental - will pay 11.99 pounds, reducing their phone bill by 84 pounds a year. This 37% reduction will return BT's line rental for these households to a similar level to 2009.

According to Ofcom, at least 800,000 of these landline-only customers don't have to do anything to claim this price cut. Rather, it will appear on their bills automatically. They will then be protected from real-term price increases, with line rental and call costs capped at the rate of inflation.

A further 200,000 customers on BT's 'Home Phone Saver' package may also be eligible. This group of customers can choose to stay on their current package, or move to the standard product being cut, depending on which is the best deal for them.

Ofcom said it expects BT's 7 pounds price cut to mean other providers can follow suit.

Separately, Ofcom is examining measures to help people shop around with more confidence, so they can take full advantage of the wide choice of competitive services.

In LOndon, BT shares were trading at 261.75 pence, down 1.25 percent.