BT introduces 'simplified' pricing structure

BT is to abolish its standard rate for residential customers and introduce a "simpler range of low prices" as part of its "continuing strategy to make it easier for people to understand phone price comparisons and the value of what they get".

BT claim the simplified pricing structure will bring low call charges and reductions in line rental for all three BT Together fixed monthly-fee options. The changes will make it easier for customers to compare the value they get from BT with similar offerings from competitors.

Existing standard rate customers will move to join the five million already on BT Together Option 1, which will become the benchmark for BTs fixed-line call prices from July 1. Standard rate customers moving to Option 1 will pay just 3p a minute in the daytime and 5.5p for up to an hour per call in the evenings and weekends instead of up to 60p for just local calls at the old rate.

BT say that by driving down prices across all three of its Together options, UK national calls will always be cheaper with BT than rivals Telewest and ntl.

Gavin Patterson, Group Managing Director, BT Consumer and Ventures, said: "These changes are the latest developments in our strategy to deliver more simplicity and value for our customers. They mean that arguments by other operators about how their prices compare with BT become virtually irrelevant. By driving down prices and making them simpler to understand, it will be much easier for customers to see how BT offers great value when compared to its main competitors. Now it will be far easier for customers to compare like-with-like when making decisions about their fixed-line phone services.

"The changes will also make BT highly competitive against the majority of its rivals for UK calls and within a whisker of most of those offering lower rates.

"Our increased competitiveness on price means customers can focus more on the overall value of what they get. They will need to weigh-up factors like the service, experience and added-value they can get from an established operator like BT when compared with what's on offer from more recent entrants to the market.

"We are determined to fight hard but fair to retain and even grow our share of the fixed-line market," he said.

"By abolishing standard rate we have made life even simpler for all our residential customers which is what they have told us they want from BT. Standard rate can be confusing with, for example, six different types of call price."

(SP)