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| BT to cut landline costs for up to one million people | BT to cut landline costs for up to one million people |
| (about 3 hours later) | |
| BT will slash costs for customers who only have a landline, after a review by regulator Ofcom. | BT will slash costs for customers who only have a landline, after a review by regulator Ofcom. |
| From April 2018, the telecoms company will reduce the price of its monthly line rental by £7, a 37% decrease from the current cost of £18.99. | From April 2018, the telecoms company will reduce the price of its monthly line rental by £7, a 37% decrease from the current cost of £18.99. |
| The reduction will save up to a million households £84 a year, and customers will have their rental costs capped at the rate of inflation. | The reduction will save up to a million households £84 a year, and customers will have their rental costs capped at the rate of inflation. |
| Ofcom expects three other providers to follow suit. | Ofcom expects three other providers to follow suit. |
| Nearly two-thirds of BT customers with only a landline are over 65 and more than three-quarters have never switched provider, the regulator said. | Nearly two-thirds of BT customers with only a landline are over 65 and more than three-quarters have never switched provider, the regulator said. |
| Ofcom said they had been getting poor value for money in recent years, compared to those who buy bundles of landline, broadband and/or pay-TV services. | Ofcom said they had been getting poor value for money in recent years, compared to those who buy bundles of landline, broadband and/or pay-TV services. |
| Phone bills 'soar' | Phone bills 'soar' |
| BT said it welcomed "a balanced voluntary agreement with Ofcom" and that it had "listened to the concerns of our line-only customers". | |
| Two other providers have increased their rental charges by even more than BT. | Two other providers have increased their rental charges by even more than BT. |
| According to Ofcom, both Sky and Virgin Media have put up their charges by 47% above the rate of inflation since 2009. | According to Ofcom, both Sky and Virgin Media have put up their charges by 47% above the rate of inflation since 2009. |
| At the same time the wholesale cost of providing the service has actually fallen by 27% in real terms. | At the same time the wholesale cost of providing the service has actually fallen by 27% in real terms. |
| "For many people, their landline is their lifeline," said Jonathan Oxley, Ofcom's competition group director. | "For many people, their landline is their lifeline," said Jonathan Oxley, Ofcom's competition group director. |
| "But households who only have a landline - and no broadband - have seen their phone bills soar. Many are elderly and have been with BT for decades. We've been clear that they must get a better deal." | "But households who only have a landline - and no broadband - have seen their phone bills soar. Many are elderly and have been with BT for decades. We've been clear that they must get a better deal." |
| The other firms that provide landline-only deals, Virgin Media, Sky and the Post Office, have not yet commentated on whether they will reduce their charges. | The other firms that provide landline-only deals, Virgin Media, Sky and the Post Office, have not yet commentated on whether they will reduce their charges. |
| However Virgin Media said it had already frozen rental charges for elderly and disabled customers at £17.99 a month. | However Virgin Media said it had already frozen rental charges for elderly and disabled customers at £17.99 a month. |
| The Post Office said it would look again at the issue. | |
| Talk Talk withdrew from that part of the market, to concentrate on broadband and phone bundles. | Talk Talk withdrew from that part of the market, to concentrate on broadband and phone bundles. |
| Age UK said it was disappointed that BT had to be prompted to cut charges by the regulator. | |
| "We welcome the reduced tariffs, but we do find it disappointing that it has taken the intervention from Ofcom for this to happen," said Caroline Abrahams, charity director at Age UK. | |
| Ofcom also said it wanted to help those who buy a phone service from one provider and broadband from another. |