It seems that BT has upped the stakes in the battle for the consumer's £11 a month line rental spend. They announced today that they are waiving the £3.95 they charge for unlimited off-peak calls on Option 2 (for the first 12 months of a new 18 month contract). They have come up with a nice headline, they are giving away up to 4.5 billion calls - maybe that's like up to 8 Mbps on ADSL MAX?
For me, Line Rental is the real battleground, where the competitors serious about fighting BT over the long term need to make progress. BT still has 78% share of the line rental spend in the UK occording to Ofcom and I have previously suggested that BT may well choose to use that by bundling products more and more with the basic line rental service.
You might well be able to get free broadband from Talk Talk for £21 a month, but what if you could get free broadband from BT with your line rental at £11? BT could still make its money from short duration fixed to mobile calls...
# posted by Jeremy Penston @ 8/16/2006 04:13:00 PM
