BT set to bring in new price regime
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.BY MARY FAGAN
Industrial Correspondent
BT is expected to announce a series of price changes today, including charging by the second for calls. The move to prices based on the exact duration of calls rather than half-minute units will be welcomed by consumer groups as it will allow customers to understand their bills more easily and decide which telephony company provides the best deals.
Mercury, BT's leading rival, already charges by the second and has used this advantage as a marketing tool. City analysts have been waiting for BT to adjust its charging method. Analysts are also expecting some cuts in international call charges over the next few months. BT has a market share of 70 per cent on international calls compared with 85 per cent in the market as a whole.
BT's price changes will form part of cuts it makes under the control set by the regulator, Oftel, which aim to reduce bills by about pounds 400m a year. The control, which limits increases to inflation minus 7.5 percentage points, is due to run until the middle of 1997.
The price moves also come as the Consumers Association prepares a hard- hitting attack on BT's charges compared with those offered by the cable television and telephony firms. A report from the CA, due this week, is expected to show a substantial gap between BT's prices and those offered by cable firms, which are taking thousands of BT customers every week.
Earlier this month, BT promised to step up its campaign against the cable onslaught, which is regarded as the biggest threat to its local services. Michael Hepher, group managing director, said that "armies" of BT employees would be sent out later this year to talk to consumers and persuade them that they should stick with - or come back to - BT.
The CA may also extend its attack to the difficulty of getting information from BT and other telecommunications firms. It is understood to have requested better information from BT many times in the past and been dissatisfied with the response. The CA was also angered at the way in which recent price changes were announced by Mercury Communications. There is a view in the CA that price cuts are hyped too much, with the less advantageous changes played down in a way that can be misleading and leave people feeling confused.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments