BT to raise call charges by 10%

Image caption BT wants customers to sign up to annual contracts

Telecoms giant BT has said it will increase call charges by 10% and its monthly line rental by 50p from the beginning of October.

The majority of customers will be informed of the move by letter this week.

The cost of connecting a call will go up from 9.9 pence to 10.9p. The daytime rate rises from 5.9p to 6.4p a minute.

Customers who sign up to a year-long contract upfront will avoid the increased charges.

BT said it estimates the impact of the changes will be just 1p a day, because its average customer makes only 80 seconds of daytime calls each day, and more than half subscribe to inclusive packages.

It said "calling plans enable customers to avoid the set-up fee and charges for most calls altogether".

Cheaper rates

From October, BT customers will pay a landline rental charge of £13.29 a month, or £12.04 if they receive their bills by e-mail.

The price changes are part of a concerted move by the company to get customers to sign up to longer-term contracts and special bundled packages.

They are offering cheaper rates for those that do.

After 1 October, the standard cost of a landline will be £159.48. For those who pay the entire sum upfront, it will be £131.88. If they sign up before the end of October, the cost will be £113.88, which works out at £9.49 a month.

BT said it would be happy to discuss inclusive packages to reduce bills or different payment options, such as inclusive packages.

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