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BT Retail residential telephony price changes: rebalancing act - Venture Insights

Report Overview

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BT Retail residential telephony price changes: rebalancing act

PublisherEnders Analysis.
Publish Date February 10, 2009
Sector Fixed Line (Internet and Voice).
Company BT.

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BT Retail is putting through another round of residential price changes, trading further aggressive cuts in call plans in return for 12 month contracts, increases in line rental and some volume-related call charges.

The £1 line rental increase is in line with our expectations and could trigger a round of increases by other players following Ofcom’s forthcoming statement on Openreach’s wholesale price ceilings.

The price changes should help BT Retail to both defend its residential customer base and conserve ARPU. However, some further loss of residential market share looks inevitable.