Good news and bad news for BT customers

BT has introduced new pricing that will see some customers benefit from cheaper pricing on call packages but will see others having to pay more for each call that they make. British Telecom, the UK's leading communications giant, currently offers three different options with its phone packages, known simply as options 1, 2, and 3. From the new pricing structure that is being introduced those on options 2 and 3 will benefit from lower package costs but those on option 1, which is the pay as you go calls, will see the cost per call rise.

With a rising number of communications companies offering free call packages for a set monthly fee, and with pricing on these packages getting lower and lower, BT has had to look at its pricing structure in order to remain competitive and to keep or win back customers. At present those on options 2 and 3 pay a monthly line rental with BT along with a fixed rate for their call packages, which enables them to make calls for free once the monthly line rental and charge has been paid. Those moving to option 2 will have the monthly fee of £3.45 waived for a year as long as they sign up to an eighteen month contract.

Although the option 2 monthly package fee is only being reduced by fifty pence, the option 3 package price will drop by two pounds, from £9.95 per month to £7.95 per month. Those on option 1, where calls are paid for individually rather than as part of a package, the cost of calls will soon be rising, and those making calls in the daytime are likely to suffer the most from these rising call charges.

One official from a price comparison website stated: 'The year's fee-waiver on Option 2 is a very strong inducement to move on to that package for Option 1 customers and customers of other providers. This move puts BT in a strong position to win back some of the customer numbers it has lost to competitors since the market was opened up and will send a shiver through the sector.'