BT Group PLC
24 March 2004
March 24, 2004
BT REAFFIRMS COMMITMENT
TO COMPETITIVE PRICING BY ABOLISHING
STANDARD RATE FOR RESIDENTIAL CUSTOMERS
BT today announced plans 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.
The plans will make BT cheaper for most UK calls than its major cable rivals.
And even where some of its main non-cable rivals are cheaper for some UK calls,
any differences per month in customer bills are likely to be minimal.
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 BT's 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.
By driving down prices across all three of its Together options, UK national
calls will be cheaper with BT than rivals Telewest and ntl anytime, day or
night.
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. These changes demonstrate our intention to meet head-on
the twin challenges of carrier pre-selection and wholesale line rental, and
overcome them. Customers will now benefit from simple, low charges. Compared to
Telewest, for instance, there is no contest. With BT, 5.5p gets you up to an
hour of chat. With Telewest, it doesn't even get you connected.
'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.
'Saving money on phone calls with BT now really is as easy as one, two, three.'
BT Together customers will now pay a lower line rental than they were
previously. BT Together Option 1 customers will pay £10.50 per month (previously
£11.50). They will also pay just 5.5p for up to an hour (previously 6p an hour)
on all evening and weekend calls made in the UK.
For £6 a month more(previously £7) than Option 1, BT Together Option 2 offers
free UK evening and weekend calls, while Option 3 gives free UK daytime, evening
and weekend calls for an additional £15 a month (previously £18). BT Together
Options 2 and 3 customers will benefit from the revised packages from April 1
and Option 1 customers from July 1.
For further information:
Jon Carter, BT Retail press office 020 7356 4523
Mike Jarvis, BT Retail press office 020 7356 6045
Notes to editors
Summary of changes
BT Together BT Together Option BT Together Option 3
Option 1 (the 2 (the evening and (the anytime plan)++
hour plan)+ weekend plan)++
£10.50 per BT Together Option BT Together Option 1 +
month* 1 + £6.00 £15.00
(previously i.e. £16.50 per i.e. £25.50 per month*
£11.50) month* (previously £28.50)
(previously £17.50)
Evenings 5.5 pence for No call charge for No call charge for up
and up to an hour up to an hour per to an hour per call.
Weekends per call. call.
1 pence per 1 pence per minute 1 pence per minute
minute thereafter thereafter
thereafter
Daytime 3 pence per 3 pence per No call charge for up
minute minute to an hour. 3 pence per
minute thereafter
5p minimum 5p minimum call
call charge charge applies
applies
+ new pricing on BT Together Option 1 introduced on July 1 2004
++ new pricing on BT Together Options 2 and 3 introduced on April 1 2004
* charges based on payment of bill by direct debit or monthly payment plan
Comparisons of BT's new pricing structure with competitors
1. •Cost of a 10-minute national call (in pence)
Daytime Evening Weekend
Competitor
BT Together Option 1 30 5.5 5.5
British Gas Choice 1 30 5.9 5.9
Carphone Talk 70 27 5.5 5.5
NTL 6p Plan 35 6 6
One.Tel International Talk 28 28 28
ReachHomecall Standard (Phones4U) 59.3 29.6 11.3
Tele2 25 8 8
Telewest 321 36 26 16
2. •BT Together Option 1 features from July 1 2004 compared with competitors
Monthly Monthly Fees Fixed Call Maximum time
Difference (incl. BT rate for
BT Together line rental, evenings
Option 1 to where and
Competitor appropriate) weekends
BT Together - £10.50 5.5p 60 minutes
Option 1
British Gas £1.50 more £12.00 5.9p 60 minutes
Choice 1
Carphone Talk 70 none £10.50 5.5p 70 minutes
Euphony Option 1 £2.00 more £12.50 4.8p 60 minutes
NTL 6p Plan £1.00 more £11.50 6.0p 60 minutes
One.Tel £1.00 more £11.50 5.5p 60 minutes
StandardUKTalk
Reach Homecall £1.50 more £12.00 6.0p 75 minutes
Standard
(Phones4U)
Tele2 No comparable tariff is offered.
Telewest No comparable tariff is offered.
Figures assume that payment is by monthly Direct Debit.
3. •BT Together Option 2 monthly fees from July 1 2004 compared with competitors
Plan Monthly Difference Monthly Fees (incl. BT
to BT Together line rental, where
Option 2 appropriate)
BT Together Option 2 - £16.50
British Gas Choice 2 none £16.50
Carphone Warehouse
Talk 70 1p less £16.49
Euphony - Option 2 £2.00 more £18.50
NTL Talk £2.00 more £18.50
Unlimited
One.Tel 1p less £16.49
LeisureUKTalk
Reach Homecall none £16.50
Off-Peak 25
(Phones4U)
Tele2 N/A Not available
Telewest - Talk £1.00 more £17.50
Evening and
Weekends
Figures assume that payment is by monthly Direct Debit.
4. •BT Together Option 3 monthly fees from July 1 2004 compared with competitors
Plan Monthly Difference to Monthly Fees (incl. BT line
BT Together Option 3 rental, where appropriate)
BT Together Option 3 - £25.50
British Gas - none £25.50
Choice 3
Carphone Talk 70 £2.01 less £23.49
Unlimited
Euphony - Option 3 £4.00 more £29.50
NTL Talk Unlimited 24 50p less £25.00
One.Tel 1p less £25.49
TotalUKTalk
Reach Homecall 2p less £24.48
Anytime 25
(Phones4U)
Tele2 N/A Not available
Telewest 50p more £26.00
TalkUnlimited
Figures assume that payment is by monthly Direct Debit.
About BT
BT Group plc is the listed holding company for an integrated group of businesses
providing voice, data and video services in the UK and elsewhere in Europe.
British Telecommunications plc, a wholly-owned subsidiary of BT Group, holds
virtually all businesses and assets of the BT group.
BT is one of Europe's leading providers of telecommunications services. Its
principal activities include local, national and international
telecommunications services, higher-value broadband and internet products and
services, and IT solutions. In the UK, BT serves over 20 million business and
residential customers with more than 29 million exchange lines, as well as
providing network services to other licensed operators.
BT consists principally of three lines of business:
•BT Retail, serving businesses and residential customers and including BT
Openworld, one of the UK's leading ISPs.
•BT Wholesale, providing network services and solutions within the UK,
including ADSL, conveyance, transit, bulk delivery of private circuits,
frame relay and ISDN connections.
•BT Global Services, BT's managed services and solutions provider, serving
multi-site organisations worldwide. Its core target market is the top 10,000
global multi-site organisations with European operations.
There are a number of other businesses within the BT group, including BT Exact,
an internationally renowned centre of excellence in IT and networking
technologies. It is also BT's technology and research and development business.
In the year ended 31 March 2003, BT's turnover was £18,727m. with profit before
taxation of £1,829m.
For more information, visit www.bt.com
This information is provided by RNS
The company news service from the London Stock Exchange
