BT prices to rise by 10 per cent

BT has confirmed its will be upping the cost of its landline phone calls by 10 per cent.

The price hike will see the fee of connecting go up from 9.9 pence to 10.9 pence, with daytime rates rising from 5.9 pence to 6.4pence.

"The calling patterns of customers means the impact of the daytime rate and set-up fee changes will be minimal," BT said.

"More than half our customers are on inclusive calling packages and don't pay charges for most calls."

The company is also sticking an extra 50 pence onto its monthly line rental the same amount as the scrapped Government broadband tax. However, it is offering customers a special offer saving of 63.60 if they pay for a full 12 months up front.

"We estimate the impact of the changes will be just 1p a day, because on average our customers make only 80 seconds of daytime calls each day and more than half subscribe to inclusive packages," said BT.

The company acknowledged it would have its critics, but pre-emptively fought back against them, claiming rival companies had, or would have to make, similar changes.

"Sky is increasing the prices of all of its packages by 3 a month from 1 September 2010," the company claimed. "In the last 18 months Sky has raised line rental once, daytime rate and set-up fee three times."

It added: "TalkTalk and others may criticise the BT price changes, but past experience shows they will probably mirror our changes in the near future."

The new price structure will be introduced from the start of October with the "Line Rental Saver" deal on offer until 29 October.