Home phone news

23rd November 2007 - SimplySwitch appoints Loanmakers as exclusive secured loan partner

After an exhaustive search of loan brokers nationwide, SimplySwitch, the national price comparison service, has signed-up Bolton-based Loanmakers as its exclusive secured loan partner.

SimplySwitch offers an independent and free price comparison and switching service across the UK. The service now covers numerous sectors including energy, broadband, home phone, credit cards and car insurance.

Alistair Tillen, Managing Director of SimplySwitch, comments: "We are delighted to be working in partnership with Loanmakers. We already offer customers a comparison service that incorporates a large number of sectors. Adding 'secured loans' to the mix represents a significant opportunity for the business and makes SimplySwitch a real 'one stop shop' for customers.

"We chose Loanmakers, in particular, because of their incredible speed-of-response to customer enquiries and excellent case-management system. Having met with a number of other brokers, we feel that Loanmakers is the perfect company to extend our offering to secured loans while maintaining the level of service that our customers have come to expect."

Tim Wheeldon, Managing Director at Loanmakers agrees: "This partnership means a great deal for Loanmakers. Being chosen ahead of our competitors in the industry for this high profile contract demonstrates the impressive team that we have on board. The growth that the company has sustained in the last 12 months, and the hard work that this has meant, has been justly rewarded. In addition, the win means that further growth will be possible in coming months."

9th October 2007 - O2 joins the broadband battle

On 15 October, O2 will finally join the broadband battleground with the launch of its new service, 'O2 Broadband'. Entering into an already crowded marketplace, O2 has pledged to 'make broadband better' with a service that is simple to use, offers transparent connection speeds and provides excellent customer service. Available to both existing and non-O2 customers, O2 Broadband will offer:

• Connection speeds of up to 20Mb
• Free wireless router
• Free McAfee internet security
• 24 hour customer services helpline, free from UK landlines and O2 mobiles
• Unlimited downloads (subject to fair usage policy)

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:
"O2 is the third mobile phone operator to enter the home broadband market, following entries by both Orange and Vodafone. As expected, O2 only offers its most competitive deals to its mobile customers [see price table below], but it has taken the opportunity to introduce some innovative customer service features.

"For instance, before a customer signs up, O2 will check their phone line to estimate the likely connection speed. They will then ensure that the customer is placed on a package appropriate to the speed that their line can support. This will be re-checked a month later to ensure the package is still appropriate and that the customer only pays for the speed that they receive.

"Internet service providers (ISPs) have received heavy criticism for failing to deliver their advertised connection speeds. While all ISPs (including O2) are careful to state ‘up to’ speeds in their advertising, we feel something must be done to give consumers a better understanding of what they're actually paying for. Assuming that O2’s system works effectively for the customer, we would like to see this rolled out across the industry. It's high time that customers were protected from paying for a service that they have little or no chance of receiving.

"As far as O2's new offering goes, there are definitely cheaper deals available elsewhere. Line rental isn’t included in the price and, at launch, O2 Broadband will only be available to 50 per cent of the UK. O2 is hanging its hat on good customer service and faster-than-average connection speeds. At present, there are only a handful of ISPs that offer speeds of up to 20Mb, and O2 mobile customers certainly get a good-value deal at this speed. It will be interesting to see how well O2 fares in this highly competitive market and whether the quality of its service lives up to its promises."

O2 Broadband – Prices for non-O2 customers*

*O2 customers pay £10 per month less for each package.

Prices exclude line rental of £10.50 per month.
'Unlimited' usage is subject to a fair usage policy.
Contract length is 12 months.

8th October 2007 - For the first time, TalkTalk customers able to walk

From 11 October, thousands of customers tied into TalkTalk's original 18-month 'free' broadband deal will be able to switch providers for the first time.

TalkTalk's deal, launched on 11 April 2006, was the UK's first 'free' broadband offer costing just £20.99 per month. Hugely popular at the time, it attracted over 340,000 customers during its first eight weeks, causing a massive oversubscription that left TalkTalk unable to cope. Because the deal was so popular, many early customers experienced long delays and poor customer service. However, it is not until now that they have been able to switch.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:
"The market has changed dramatically over the last eighteen months and TalkTalk is no longer the only supplier to offer this type of 'bundle' package. Although it's made an ongoing commitment to remain the cheapest supplier, competitors such as Tiscali, BT and Virgin Media now offer additional services such as TV on demand and mobile phones.

"TalkTalk was blighted by customer service problems and, despite spending £15m on improvements, many customers remain unhappy. A year and a half is a long time in this industry and there are now a multitude of deals to choose from. While TalkTalk still offers one of the UK's cheapest home phone and broadband bundle, those customers who suffered at the beginning will now be considering their options.

"Research by SimplySwitch.com indicates that internet service providers today offer almost six times better value for money than they did before TalkTalk launched its 'free' broadband offer. The industry has become far more competitive over the last 18 months, and it's to TalkTalk's credit that it still offers one of the cheapest deals. However, while customers might be tempted to base their choice purely on price, we would always advise people to choose the package that best suits their needs and lifestyle.

"When choosing a broadband deal, customers should always check the small print for things like download limits, contract length and exit penalties. For anyone looking for a home phone and broadband package, TalkTalk does offer good value. However, it still insists that customers sign up for a minimum of 18 months. For those who signed up at the beginning, taking on such a lengthy contract has been no bed of roses."

Today's top home phone/broadband bundle deals (8Mb, high usage allowance):

Source: SimplySwitch.com

Accurate 8 October 2007

30th July 2007 - BT alters call charges from 1 August

BT recently cut the price of its Option 2 and 3 call packages, sparking a mini price war in the home phone market. From 1 August, BT will make further changes to the way it charges for calls. This time, however, it is not such good news for customers.

From August, BT is altering the way it charges for calls to mobile phones, 0845 and 0870 numbers. These calls will move from BT’s current daytime, evening and weekend rates to just daytime (06:00 to 18:00) and evening (18:00 to 06:00) rates - which will apply even at weekends*.

Calls to mobiles, for example, will change from 13p, 8p or 5p per minute to 12.5p or 7.5p. This means that calls during the day at weekends, which were previously 5p per minute, will leap up to 12.5p per minute - an increase of 150%. The cost of daytime landline calls will also rise from 3p to 3.25p per minute and the ‘set up fee’, charged by BT for connecting certain calls, will double from 3p to 6p**.

It is not all bad news though. The cost of evening and weekend calls to UK landlines is set to fall from 5.5p (for up to an hour) to 4.5p. BT claims that these are the times when customers spend longest on calls.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:

“BT’s earlier price cuts were great news for the customer, but people need to make sure that they’re not gaining on the swings and losing on the roundabouts. BT is making a concerted effort to move customers away from its ‘pay-as-you-go’ Option 1 package onto deals that contain inclusive calls. Part of this effort involved cutting the prices of its inclusive packages. The other part has involved pushing up the prices of certain calls.

“While some calls will become cheaper after 1 August, others are set to rise by an eye-watering amount. Because prices have been restructured, we urge customers to evaluate their calling habits and make sure they’re on the tariff that best suits their needs. Customers on BT Option 1, who regularly make even a small number of calls, are almost certain to benefit by switching to an inclusive package. All of the major providers offer inclusive call packages and, thanks to the fierce competition between suppliers, there are now some excellent deals available.”

- ends -

*0845 calls will change from 3p (day), 1p (eve) or 0.5p (weekend) to 2p (day) or 0.5p per minute (eve). 0870 calls will change from 7p, 3.5p or 1.5p to 6p or 1.5p per minute. Calls to mobiles will change from 13p, 8p or 5p to 12.5p or 7.5p per minute.

**This fee does not apply to weekend or evening calls to UK landlines.

27th July 2007 - Sky announces full year results

27 July 2007. British Sky Broadcasting today gave its full-year trading update. BSkyB's operating profit fell 7% to £815 million because of heavy investment in new services such as broadband and home phone. However, Sky’s marketing drive has been a huge success. The company now has 716,000 broadband subscribers and 526,000 ‘Sky Talk’ customers.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:

“Sky’s home phone and broadband products have continued to grow in popularity. This is great news for competition and should prompt rival suppliers to respond in terms of lower prices and better customer services. In order to attract new subscriptions, Sky spent around £70m in advertising in the first six months of the year alone - a clear indication of how fierce competition has become within the telecoms sector.

“While Sky’s bundle packages have proven popular with customers, anyone thinking of signing up should bear in mind that, though competitively priced, Sky’s home phone and broadband offers are only available to Sky TV subscribers.

“Customers happy to live without Sky TV should look elsewhere as they’d need to pay at least £15 a month for the most basic TV package in order to take advantage of the offers. With Sky, line rental is still paid to BT, so this cost must also be taken into account when comparing deals. Another barrier for many households is that Sky’s broadband service is still unavailable to 30% of the UK.

“Those looking for a new home phone or broadband package should take into account a range of factors when making their decision. Rather than basing their choice purely on price, people should always check the small print for things like contract length, exit penalties, download limits or ‘fair usage policies’. We would always advise customers to check out all the options and select the service that best suits their needs. Bundled packages can offer excellent value, but only if a customer genuinely wants to use all of the products.”

11th July 2007 - Sky announces results

11 July 2007. British Sky Broadcasting today announced its trading update for the three months to 30 June 2007

- Sky Broadband customers have increased by 259,000 to 716,000 - Sky Talk (home phone) customers increased to 526,000 - Sky now covers 70% of the UK for its home phone / broadband services

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:“Sky’s bundled products have continued to prove popular, thanks largely to their competitive headline prices and the range of services available.

“Customers should bear in mind that the bundled offers are only available to Sky TV subscribers. Those not interested in a TV package should look elsewhere, as they’ll need to pay a minimum of £15 a month for Sky’s most basic TV package. With Sky, as with other providers, line rental (£10.50 per month) is still paid to BT, so this cost must also be taken into account when comparing deals. Another barrier for many households is that Sky’s high-speed broadband is currently available to just 70% of UK households, though this level of coverage is six-months ahead of Sky’s plans.

“Sky’s telecoms products have been well received, which is great for competition in the sector and should help drive prices down further. However, Sky’s dispute with Virgin Media, following their failure to agree on terms for Sky to be carried on Virgin’s cable channels, has been less than positive.

“It is interesting to see that the negative publicity it created has not deterred partners. Sky and Tiscali UK recently announced a deal to add the full set of Sky basic channels to the Tiscali TV platform. Tiscali was perhaps inspired by the 47,000 customers Virgin Media lost in the quarter following its dispute with Sky.

“Those looking for a new home phone or broadband package should take into account a variety of factors when making their decision. We would always advise customers to check out all the options and select the service that best suits their needs. Bundled packages can offer much better value than just broadband, but only if a customer is genuinely interested in all the products.”

2nd July 2007 - TalkTalk introduces cheaper ‘free broadband’ option

TalkTalk will now offer free broadband on its £5.89 per month ‘Talk2 International’ tariff. ‘Talk2 International’ includes unlimited evening and weekend calls within the UK, plus calls to 36 international destinations. Broadband (up to 8Mb) will now be included in the deal with a monthly download limit of 40GB. The total cost of the tariff comes to £16.39 a month (including £10.50 line rental) and customers must sign up for a minimum of 18 months. There is a one-off connection fee of £29.99. Previously, free broadband was only available on TalkTalk’s ‘Talk3 International’ tariff which costs a total of £20.49 per month.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:

“This is fantastic news for the consumer. TalkTalk has decided to continue its price war with BT and has introduced a great value bundle product. Previously, free broadband was only available on the more expensive ‘Talk3 International’ tariff. Customers will now receive free broadband with the ‘Talk2 International’ tariff, a deal that’s cheaper because it only includes free evening and weekend calls. Because ‘Talk2’ excludes daytime calls in favour of a lower monthly price, it will better suit the calling habits, and wallets, of thousands of UK households.”

While this new offering provides excellent value, there are a few things that customers should bear in mind. Darby continues:

“While TalkTalk’s customer service is slowly improving, it retains a poor reputation. Following a recent investment in customer service staff, TalkTalk should be able to activate a new customer’s broadband in around four weeks. However, despite the investment, a small number of customers are still reporting problems, something new customers should be aware of before signing up.

“Another thing that people should bear in mind is that TalkTalk’s free broadband offer is only available to 70% of UK households. If a customer lives outside one of TalkTalk’s ‘local loop unbundled’ areas, broadband will cost £15 per month on top of the price of the call package and line rental.

“The contract length, at 18 months, seems excessively long for the fast-changing communications sector and customers should always take into account the £30 activation fee when comparing rival tariffs.”

5th June 2007 - TalkTalk responds to BT's price cuts – SimplySwitch comments

5 June 2007. Following BT’s price cuts on 1 June, TalkTalk today announced that it too is reducing prices. Like BT, TalkTalk has cut line rental to £10.50 per month. It’s ‘Talk2’ calling package, which allows unlimited evening and weekend calls, has been reduced to £3.39 (just 6p below BT’s equivalent package). Talk3, which allows unlimited calls to landlines, has been cut to £7.49 (just 1p below BT).

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:

“TalkTalk has been quick to respond to BT’s price cuts. However, while it has overtaken BT as the cheapest call package provider, it hasn’t done so by much. While TalkTalk currently leads the market in terms of price, undercutting BT by a few measly pence won’t be a deciding factor in the battle to win customers.

“Because the telecoms market is so competitive, margins are becoming slim. Suppliers will increasingly need to rely on service and innovative bundle products in order to win new customers. While TalkTalk’s customer service is slowly improving, it retains a poor reputation, something that it will have to overcome if it’s to take on BT in the ‘home phone-only’ arena. TalkTalk’s strength currently lies in its free broadband offer. It would be great to see BT raise the stakes in this regard and bring a similar package to the table.

“As telecoms providers continue to jockey for position, we would advise customers to choose the package that best suits their needs. Rather than basing their choice purely on price, people should always check the small print for things like contract length, exit penalties and relevant extras, for instance friend and family schemes or cheap international calling prices. For anyone looking for a home phone/broadband package, TalkTalk does offer excellent value. However, it will have to overcome those customer service gripes before people embrace it wholeheartedly.”

1st June 2007 - BT cuts prices – SimplySwitch comments

1 June 2007. BT today announced its latest round of price cuts. Its Option 3 call package, which allows unlimited calls to landlines, has been cut from £9.95 to £7.95. Option 2, which allows unlimited evening and weekend calls, has been cut from £3.95 to £3.45. Line rental has also been cut by 25p a month to £10.50 for customers who choose paper-free billing and pay by direct debit. From 2 June, BT will be promoting its latest price cuts with a high profile advertising campaign.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:

“These latest price cuts are great news for the consumer. BT still dominates the UK’s telecoms market so it’s encouraging to see it lead the way in terms of pricing. With these cuts in place, BT currently tops the tables as the UK’s best value inclusive call-package provider. However, it won’t be long before rival telecoms firms respond by slashing their own prices, sparking a price war that will further benefit the customer.

“BT is making a concerted effort to move customers away from its ‘pay-as-you-go’ Option 1 package onto deals that contain inclusive calls. From today, non-BT customers, and customers currently on Option 1, will be able to sign up to an 18-month contract for Option 2 and receive the first 12 months for free.

“This is a great deal from BT and will undoubtedly tempt many people over to their inclusive package. However, we would still urge customers to check their monthly usage in order to determine whether an inclusive deal is right for them. For instance, customers who have a BT landline in order to access broadband, but rarely use their phone, might be better off sticking with Option 1.

“It will be interesting to see if BT extends its price cutting activity to other areas such as broadband, BT Vision and BT mobile. Currently, rival suppliers such as TalkTalk and Tiscali offer cheaper deals to customers taking home phone and broadband. BT recently overtook Virgin Media as the UK’s largest broadband provider. We urge BT to use its market leading position to offer industry-beating deals on bundle packages.”

1st May 2007 - BT increases charges from 1 May 2007

From 1 May 2007, BT will charge an extra £4.50 per quarter to customers who pay by cash or cheque. Late payment fees will also rise from £5 to £7.50.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:

“Raising the late payment charge and introducing a ‘non-direct debit’ fee on the same day is a bold move by BT, a provider that’s already one of the UK’s most expensive. When British Gas announced plans for a £5 late payment fee earlier this year, it met with a huge consumer backlash that forced it to do a u-turn. BT’s latest penalties are likely to prove equally unpopular and will undoubtedly push many customers away.

“Unfortunately, instead of rewarding customers who switch to direct debit, BT has elected to penalise those that don’t. This presents a problem to the millions of customers who mistrust the direct debit system or do not hold bank accounts, usually the elderly and vulnerable who can least afford to pay extra.

“Around a quarter of BT’s customers, about 5.5 million, currently pay by cash or cheque. Unless there’s a mass switch-over to direct debit, BT could stand to make up to £24.75 million per quarter. That’s almost £100 million per year, a figure that will grow even higher when BT’s late payment ‘earnings’ are taken into account.

“Switching phone companies is now quick and easy. It doesn’t involve changing phone number or having a new phone line installed. If customers are unhappy with these new charges, they should see what’s available elsewhere and switch suppliers.”

26th March 2007 - BT drops extra charges

Following pressure by Ofcom, BT has dropped plans to charge a £5 penalty to any customer switching to an alternative provider.

The phone company has also decided not to increase the charge for barring outgoing calls from a landline from £11.50 to £17.50.

Karen Darby, CEO of SimplySwitch.com said: "BT is a very innovative company and is always trying to find ways to make more money. Consumers looking to a find a better deal were set to be unfairly punished and in today’s competitive market a penalty for switching would be seen as grossly unfair.

“Scrapping the extra cost for barring outgoing calls from a landline will benefit the most vulnerable households, who are most likely to request the service.

“However, from May, BT is still set to charge customers an extra £4.50 per quarter if they pay their bills by cash or cheque and late payment fees will increase from £5 to £7.50. These punitive charges give customers yet another reason to leave and will undoubtedly push many people away. The good news is that there is no penalty for changing suppliers. Switching phone companies is quick and easy and doesn’t mean you lose your phone number or need new phone lines installed.”

8th February 2007 - NTL re-launches as Virgin Media

NTL, the cable TV, telephone and broadband supplier has re-launched as Virgin Media. NTL customers have long suffered from poor customer service brought about by the company’s lack of resources. Virgin claims to have spent nine months improving the service, including the implementation of a new billing system and a £5m investment in customer services.

Karen Darby of SimplySwitch.com, the price comparison and switching service, comments:

“Virgin Media is launching into a tricky market. Multi-channel TV is at the heart of Virgin’s offering, so it faces stiff competition from rivals such as Sky, which recently launched its ‘See, Surf, Speak’ package. However, 80% of people who want multi-channel TV have opted for Freeview, a completely free service that offers a decent selection of channels and is being pushed heavily as the countdown to the digital switch-over continues. Since 2004, only 3% of the UK households interested in multi-channel TV have signed up to cable.¹

“On the telecoms/broadband front, Virgin Media’s bundle packages are competitively priced but people should bear in mind that it’s more problematic to switch providers once they’ve signed up to cable. This may present a problem, especially as many customers suffered from poor customer service in the days before NTL was re-branded.

“Another obstacle that needs to be overcome is that lots of people are uncomfortable signing up their TV, telephone, broadband and mobile phone ‘wholesale’ to just one supplier. While Virgin Media’s bundle packages do offer good value, individual products are actually quite expensive. Virgin’s 10Mb unlimited broadband package costs £35 per month. This is £15 more than TalkTalk’s 8Mb deal that includes line rental and free phone calls.

“If Virgin’s investment really has improved NTL’s service, then their competitive pricing may win them more subscriptions. If, however, the customer sees little difference, Virgin Media might struggle to increase its market share.”

¹ Figures from Ofcom

18th January 2007 - Mobile phone

Mobile phone ‘cash back’ deals have been blasted for their complicated terms and conditions. It has been claimed that mobile retailers make it too difficult for customers to claim their money back. SimplySwitch has advice for those wishing to take advantage of such deals. Karen Darby, of leading price comparison service SimplySwitch.com, comments:

“Retailers are able to offer these packages because many customers forget to claim their cash. Most companies require customers to send in original claim forms and bills, often within strict time limits, making it difficult for them to reclaim their money. However, if the customer is well organised, keeps their original documents and responds on time, these deals do offer outstanding value.”

Darby has the following advice for those wishing to take advantage of cash back deals:

• Before signing up for any deal, make sure that you read and understand the terms and conditions – ‘cash back’ instructions can be fairly complicated and you will need to follow them to the letter.
• Set up a direct debit to pay your bills and make sure you that you have enough money in your account for payments. Most companies will remove your entitlement to cash back if you are late paying a single bill.
• Make sure you keep all the paperwork that comes with your phone. You will usually need the original claim form as well as the dispatch note to claim back your money.
• Keep your monthly bills - you will need to send these in to claim your money. Most companies do not accept copies of bills, so make sure you keep the originals.
• Make sure you know when your claims are due. If you send in a claim form late, you will not be able to claim that period’s money. In order to remind yourself when to act, program the relevant dates into your new phone’s calendar as soon as you receive it.
• Only take out a deal for as many minutes/texts as you are likely to use. With so many free deals available, it is tempting to take out the offer with the greatest number of minutes/texts. Remember though, you will have to pay the monthly payments before claiming your money back. The more minutes that are included in the deal, the higher the monthly fee will be. If you do happen to miss a claim, the money for that period will be lost.

18th December 2006 - Switch to save £1,000 in 2007

Market analysis by SimplySwitch.com has revealed that consumers could save £1,101 in the New Year simply by switching to better energy, broadband, phone and credit card deals. For people who have not switched providers for a year or more, average savings could easily cover a trip to New York, a second-hand car or even a brand new plasma screen. Unless consumers take action, up to £31 billion could be wasted nationally on over-priced bills throughout the year.

Karen Darby, of price comparison service SimplySwitch.com, comments: “People have better things to spend their money on than gas, electricity and telephone bills. While it can seem mundane, consumers should invest a few minutes each year to compare suppliers and their prices. Costs have changed so dramatically over the past 12 months that people would be surprised at the savings they could make.”

Gas and electricity

Energy prices have doubled in the last three years and a huge difference has developed between the cheapest and the most expensive suppliers. If a consumer has not switched for a year or more, there are almost certainly big savings to be made. In particular, customers with moderately high energy usage (for example, those running a family home) should check their tariff against the competition at least once a year.

Average household saving per year: £200

Home phone

The home phone market is incredibly competitive. More and more suppliers are offering telephone services and prices continue to fall. However, many consumers have yet to take advantage of these reductions as they have never switched. With such a large range of providers and tariffs now available, the most cost-effective one for a customer depends entirely on their calling pattern. In general, average phone users could save up to 70%.

Household saving: £128

Broadband

Latest figures show that more than a third of UK households now have broadband. There has been such a large influx of broadband providers over the past year that the market is now more competitive than ever before. In general, customers who have not switched recently should be able to upgrade their broadband package while still saving money.

Ofcom recently introduced new rules that will make it easier for customers to switch broadband suppliers. From 14 February 2007, suppliers will have to provide a migration authorisation code (MAC) on request for free, making it easier than ever before to switch to lower priced packages and faster broadband connections.

Saving per household (over 18 months): £228*

Mobile phone

Taking advantage of ‘cash back’ deals from online retailers, consumers can get the latest handsets, with up to 750 minutes and 150 texts a month included, completely free. These deals normally involve signing up to a minimum 12 month contract and paying the full-price monthly line rental before later claiming the money back. An average customer on a contract pays at least £30 per month. If they are not on a cash back deal, this money is effectively wasted.

Saving per person: £360

Credit cards

With a number of cards still offering 0% APR for 9-12 months, there is no point paying the current industry average of 16.99%**. In the UK, the average credit card debt is £1,100***, so those who have not yet switched to a 0% deal could be wasting a fortune. Obviously, the best way to save money on credit cards is to pay the debt off. With the savings made on other utilities, consumers should be one step nearer to achieving this goal.

Average saving per person: £185

Total saving: £1,101

Karen Darby says: “Many people don’t realise how easy it is to make these savings. If you phone a service like SimplySwitch, you can switch as many, or as few, services as you like. A complete financial overhaul takes less than take half an hour and, with over £1000 in savings to be made, it could be the most productive 30 minutes you spend all year."

* BT Total broadband compared to TalkTalk broadband – 18 month contracts
** Source: creditaction, 1 Dec 2006
*** Source: BBC.co.uk, April 2004

8th December 2006 - Ofcom has announced the launch of new accreditation scheme

Ofcom is to overhaul the way it operates its price comparison accreditation scheme to help consumers find the best deals when looking for internet, telephone and digital TV services.

One of the changes introduced requires an offline method of accessing information so that the service is available for all consumers and not only those that have internet access.

Karen Darby, CEO of SimplySwitch.com comments: “When looking for the best deal, the off-line channel is vital for consumers and one that we have offered ever since we launched our free service in 2002. Many customers are happy to research online, but like the assurance of being able to talk to an advisor to complete a new application.

“In the UK, we enjoy one of the most competitively priced home phone markets in the world and broadband prices continue to fall at an unprecedented rate. We think this is an encouraging step forward and will help many sign up to more competitively priced tariffs, but we advise consumers to go to an independent source for a truly impartial comparison.”

4th December 2006 - BT launches BT Vision

BT today launched its next generation television service, BT Vision. Customers will receive a free V-box, effectively giving them ‘freeview’ but they will also be able to download films and programmes on a pay-per-view or monthly subscription basis.

Karen Darby, CEO of SimplySwitch.com comments: “BT Vision is tricky concept to understand. In simplified terms, BT has produced a box that gives customers access to the freeview channels; E4, BBC3, BBC News 24 etc. However, their box also connects to a video-on-demand service that has content available for download. Customers have the option of watching these programmes on a pay-per-view basis or by signing up for a monthly subscription.

“However, to access the service, customers must sign up for BT’s ‘Total Broadband’ package, which costs up to £26.99 per month, as well as paying a £90 connection and installation fee. While BT Total Broadband does include free evening and weekend calls to UK landlines, it isn’t amongst the best broadband deals on the market, as other providers offer greater download limits for a lower monthly fee.

“When evaluating BT’s new offering, customers need to ask themselves if the content available for download is really suited to them. If a customer simply wants access to the freeview channels, they might be better off buying a simple set top box. If a customer isn’t interested in broadband, this is definitely not the deal for them.

“Customers should also bear in mind that ‘exclusive’ programmes like Lost won’t be available on BT Vision, at least for the time being.”

1st August 2006 - BT cuts prices

BT has announced that it has cut the price of some of its main residential phone packages.

BT Together Options 2 and 3 will be cut by almost a third from 1 st August and 25p monthly line rental discount will be offered to customers who opt to receive bills online.

Karen Darby, CEO from SimplySwitch.com comments:

"As BT is no longer the monopoly player, the cost of phone calls has fallen significantly in recent years. BT’s latest price cuts are good news for consumers as they will help fuel further competition in the home phone market.

“From the 1st August, BT is free to set its own prices as it will be released from price controls set by Ofcom. With the onset of VoiP and broadband now more popular than dial-up, telecoms companies are having to introduce increasingly competitive tariffs.

“With a number of bundled products available, it is worth customers spending a few minutes checking that they are on the best deal. Over the coming months we expect other providers to follow suit and offer households further savings on current prices. We would also like to see providers follow BT’s lead and reduce the cost of non-geographic calls, as well as reducing the rates of their basic packages."

20th July 2006 - Ofcom removes price controls on BT

Karen Darby, CEO of SimplySwitch.com comments: "Ofcom’s removal of price controls on BT is good news for consumers. Giving BT the power to set its own price will ultimately benefit the customer.

"Prices have fallen significantly in the last 10 years. We predict that there will be a period of change over the next few months and this will have a positive effect on competition once the market settles. With the rampant advance of new technologies, telecoms companies have to introduce more competitive tariffs just to maintain their market share.

"It is over 20 years since deregulation and these price controls had to stay in place while BT was the monopoly provider. In recent years, companies like TalkTalk and the Toucan have come into the market offering competitively priced packages for customers and thus creating a truly competitive market.”

6th June 2006 - Carphone Warehouse profit announcement

Carphone Warehouse has announced a rise in profits of 35.5% to £136m. 340,000 people have signed up for its 'free' broadband service since it launched, twice the number expected.

Karen Darby, CEO of price comparison and switching service SimplySwitch.com comments:

"The Carphone Warehouse deal is taking customers by storm, but due to technical issues, some will be disappointed that they can't go live until August.

"As the market is going through a period of significant change, we suggest that customers are careful signing up to long term deals . Orange announced a new 'free' broadband service last week and Sky is rumoured to be launching a rival deal very soon. Other good offers are likely to follow over the coming months as competition continues to heat up .

"However, there has never been a better time to research the market and I urge consumers to look around and check which deal is the best for them. Also, it is worth checking the small print before getting tied into an 18 month contract with what appears to be a good deal now. Customers who are unhappy at having to wait two or three months to get connected should look at some of the many other bundled products available. It can often be cheaper to go for different providers for each service you need, rather than taking a bundled product from one company."

16th May 2006 - BT announced a 5% rise in full year pretax profits to £2,177 million.

BT announced a 5% rise in full year pretax profits to £2,177 million. The group said "new wave" revenues, from IT, broadband and mobile services had helped drive earnings higher, while traditional business revenues have fallen.

Karen Darby, CEO from SimplySwitch.com comments: "BT's profits have been helped by the fact that many competing suppliers are still being forced to use BT lines. We urge Ofcom to put in place additional measures to speed up local loop unbundling. There are some great deals available to consumers, but many suppliers are still beholden to BT to deliver their services.

"BT has faced increasing competition in the home phone and broadband markets. Prices for fixed line calls have gone down by 50% over the last 10 years and voice calls now generate less than 10% of BT's revenues. BT has had difficulties responding to this changing marketplace, due to the price curbs imposed by Ofcom. When these are lifted in August, it will be free to set its own prices and compete for customers. We are expecting the company to try to aggressively retain and win back customers to increase revenues in the voice market, its traditional stronghold.

"We think it is unlikely that BT will slash its prices, as it still has the majority share of the home phone market. However, we expect it to offer more competitive tariffs or new bundled products to compete with companies such as NTL or Homechoice. There is no guarantee that BT won't increase prices. It is worth customers spending a few minutes checking that they are on the best deal available."

11th April 2006 - Carphone Warehouse deal

Carphone Warehouse has announced that it will be offering TalkTalk landline customers national and international calls and up to 8mb broadband for £9.99 a month, plus rental.

Karen Darby, CEO of the independent price comparison and switching service, SimplySwitch.com said:

"This latest offer from Carphone Warehouse is certainly an attractive package that is set to generate an aggressive price war in the home phone and broadband market.

“Broadband prices have already tumbled, but this latest deal will not only help the company attract the customers it is looking for, but force other providers to lower their prices even further.

“There are now 10 million homes with a broadband internet connection. We predict that this announcement and the resulting price war will boost the number of homes with broadband by over 20% by the end of the year. It was also signal the end of dial up internet.

"There are other combined broadband and phone packages already on the market and customers need to check that they are getting into the best deal for their requirements. The Carphone Warehouse deal is an attractive rate at current prices, but it does charge a £29.99 connection fee, a £70 fee for disconnection and tie customers in for 18 months in a market that is ever changing.”