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| Ofcom to investigate rising landline prices amid concern for elderly Ofcom to investigate rising landline prices amid concern for elderly | |
| (about 9 hours later) | |
| The media regulator is to investigate why telephone landline prices have risen so fast amid concerns that the elderly and vulnerable are being adversely affected by price hikes. | The media regulator is to investigate why telephone landline prices have risen so fast amid concerns that the elderly and vulnerable are being adversely affected by price hikes. |
| All major landline providers had increased line-rental charges by between 28% and 41% in recent years, in spite of the wholesale cost of providing those landlines falling by 25%, said Ofcom. | All major landline providers had increased line-rental charges by between 28% and 41% in recent years, in spite of the wholesale cost of providing those landlines falling by 25%, said Ofcom. |
| Market leaders BT and Virgin Media had the highest line-rental charges, with TalkTalk and Sky not far behind, Ofcom said. The price increases were felt most acutely by customers with a standalone landline service – those who do not have broadband or a pay-TV deal. | Market leaders BT and Virgin Media had the highest line-rental charges, with TalkTalk and Sky not far behind, Ofcom said. The price increases were felt most acutely by customers with a standalone landline service – those who do not have broadband or a pay-TV deal. |
| Last year, the Guardian highlighted the steep rise in landline charges in recent years that has massively outstripped inflation. UK consumers were found to be paying about 50% more for landlines than counterparts in Europe. | Last year, the Guardian highlighted the steep rise in landline charges in recent years that has massively outstripped inflation. UK consumers were found to be paying about 50% more for landlines than counterparts in Europe. |
| The telecoms firms have increased landline prices – BT’s is now £18.99/month – in part to offset declining revenues elsewhere. Telecoms customers now make far fewer voice calls on their landline as they rely on their mobiles or social media. However, they generally need a landline at home if they want to access fixed-line broadband. | The telecoms firms have increased landline prices – BT’s is now £18.99/month – in part to offset declining revenues elsewhere. Telecoms customers now make far fewer voice calls on their landline as they rely on their mobiles or social media. However, they generally need a landline at home if they want to access fixed-line broadband. |
| Ofcom’s competition group director, Jonathan Oxley, said: “Our evidence shows that landline providers have been raising the price of line rental, even as their costs have been coming down. | Ofcom’s competition group director, Jonathan Oxley, said: “Our evidence shows that landline providers have been raising the price of line rental, even as their costs have been coming down. |
| “We’re particularly concerned for older and vulnerable customers, who rely on their landline and are less likely to change provider. So we’re reviewing this market to ensure these customers are protected and getting value for money,” he said. | “We’re particularly concerned for older and vulnerable customers, who rely on their landline and are less likely to change provider. So we’re reviewing this market to ensure these customers are protected and getting value for money,” he said. |
| Ofcom found that elderly and vulnerable people, who make up a significant proportion of standalone landline customers in the UK, were particularly affected by price rises. | Ofcom found that elderly and vulnerable people, who make up a significant proportion of standalone landline customers in the UK, were particularly affected by price rises. |
| The government’s digital minister, Matt Hancock, has welcomed the investigation. “Landlines are an essential service for thousands of households across the country, but especially for elderly and vulnerable people who are more reliant on their home phones. The government is clear that action should be taken where consumers are not getting a good deal, which is why we are launching a green paper next year to examine markets that are not working fairly,” he said. | The government’s digital minister, Matt Hancock, has welcomed the investigation. “Landlines are an essential service for thousands of households across the country, but especially for elderly and vulnerable people who are more reliant on their home phones. The government is clear that action should be taken where consumers are not getting a good deal, which is why we are launching a green paper next year to examine markets that are not working fairly,” he said. |
| A spokesperson for BT said: “We already offer a number of products that represent significant savings on standard line rental. For example, our home phone saver product, and for vulnerable customers our BT Basic service, which costs just £5.10 per month. We will engage fully in the industry consultation.” | A spokesperson for BT said: “We already offer a number of products that represent significant savings on standard line rental. For example, our home phone saver product, and for vulnerable customers our BT Basic service, which costs just £5.10 per month. We will engage fully in the industry consultation.” |
| Virgin Media said it was launching a new “Talk Protected” plan, which freezes line rental at £17.99/month for its older and disabled customers who rely on their landline the most. | Virgin Media said it was launching a new “Talk Protected” plan, which freezes line rental at £17.99/month for its older and disabled customers who rely on their landline the most. |
| Ofcom’s consultation closes on 28 February 2017. | Ofcom’s consultation closes on 28 February 2017. |