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UK: BT agrees to slash landline costs by 37%

By  |  October 26, 2017

Telecoms giant BT has announced it will cut the cost of its landline-only contracts by 37%, following a review from the industry regulator Ofcom.

The FTSE 100-listed company said on Thursday, October 26, that, from April next year, up to one million landline-only customers will see the price of their contracts decline by £7 from the current £18.99 (US$25).

Households affected by the reduction will save on average £84 (US$110.60) a year and will be protected from further price increases as rental costs are capped at the rate of inflation.

The decision comes after Ofcom launched a review of competition within the telephone industry, which found landline-only customers were getting poor value for money, compared to those who purchase landlines in a bundle with broadband or pay TV access.

Ofcom said it stepped in because bills for landline-only customers – nearly two-thirds of whom are over 65 – have “soared” in recent years despite BT and other landline providers benefiting from significant cuts in the cost of providing the service.

Full Content: The Guardian

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