BT to increase private customer charges by 5%

  Autoschediastic 01:10 AM 27 Aug 11
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Another price hike as if we havent gone through enough! Petrol Cigarettes Gas Electricity VAT Etc..the list is getting bigger this country is becoming unbearablely hard to live in..

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  CurlyWhirly 07:29 AM 27 Aug 11

I left BT last year due to the constant price rises but I read in that article that prices will be frozen until 2013 and about time too.

  morddwyd 07:58 AM 27 Aug 11

5% is hardly a hike.

Coupled with the freeze it's just about keeping line with inflation.

  interzone55 08:05 AM 27 Aug 11

morddwyd

5% is hardly a hike.

Well not compared to the current rate of inflation, but when you factor the 9% increase earlier this year, and the 10% last year it is a bit of an insult in these straitened times.

  morddwyd 08:40 AM 27 Aug 11

But as nothing compared with the 18/19% of the utilities, or the amount petrol has gone up over the same period, or even the increasing cost of food.

  Nontek 09:23 AM 27 Aug 11

I recently upgraded my BT Broadband to BT Infinity, Broadband and Anytime Calls - my package is not being affected by the changes. I still prefer BT over any other ISP.

My line rental is £10 per month and my Broadband is £27 per month (give or take a few pence), with regular actual speeds of 37Mbps plus - I am happy with that.

  CurlyWhirly 09:37 AM 27 Aug 11

strong textmorddwyd But as nothing compared with the 18/19% of the utilities, or the amount petrol has gone up over the same period**

Well by my reckoning 10 + 9 + 5 = 24 so over the same period BT have increased their bills by 24%

  interzone55 09:59 AM 27 Aug 11

morddwyd

It's still 4 times my pay rise this year, and I can't see myself getting any more next year

  Forum Editor 10:07 AM 27 Aug 11

"over the same period BT have increased their bills by 24%"

You'll need to check your reckoning. You don't simply add up all the increase percentages to find the real increase over the starting figure.

If I sell something for £100 and increase the price by 10% the new cost will be £110. If I then increase the cost by another 10% I calculate it based on £110, not £100. The new price will be £121, which represents an increase over the original price of 21%

Using your figures the increase over the original cost is 25.89%, not 24%

It's no good taking one company's price increase and saying "as if we havent gone through enough!" BT doesn't look at the increase in the price of other goods and services and say to its shareholders 'the poor subscribers have gone through enough with other price increases, so we are going to take pity on them, and keep our prices down - you'll understand when you receive a lower dividend, won't you?'

Every business in the country is fighting to keep its own internal economy going, and price increases are made in order to do that. The alternative is failing businesses, and a deepening economic crisis. What we all need to do is work hard and generate as much revenue as possible - both for our employers, for our country, and for ourselves. That might all sound a little dramatic, but it's a fact; the way that we'll recover from our current problems is by generating more revenue, corporate,personal,and national. Companies sell goods and services, and pay their workers and taxes with the proceeds. The workers use their money to pay taxes and buy more goods and services. Foreign companies and individuals buy our goods and services, and that money helps our businesses to thrive.

PLC concerns have a duty to their shareholders, and they make commercial decisions based on their understanding of how best to maximise profits - they aren't in business as philanthropic organisations.

  CurlyWhirly 10:14 AM 27 Aug 11

PLC concerns have a duty to their shareholders, and they make commercial decisions based on their understanding of how best to maximise profits - they aren't in business as philanthropic organisations.

Yes I understand that but what they do is put up prices for the sake of it.

If Openreach had increased their wholesale costs then I could understand all the price rises.

It's the same with the energy companies, they are quick enough to increase the prices when wholesale csts rise but are slow to pass on the savings when the wholesale prices fall.

Every business in the country is fighting to keep its own internal economy going, and price increases are made in order to do that. The alternative is failing businesses, and a deepening economic crisis.

Yes but when businesses keep increasing their prices all the time, they can also lose customers.

Regarding the deepening economic crisis, when the public has less and less disposable income, they spend less on the high street which leads to store chains closing which also depresses the economy.

  Forum Editor 10:47 AM 27 Aug 11

"Yes I understand that but what they do is put up prices for the sake of it."

You obviously don't understand it at all, otherwise you wouldn't say that in a competitive market a business puts up its prices "for the sake of it".

"when the public has less and less disposable income, they spend less on the high street which leads to store chains closing which also depresses the economy".

Exactly, and that illustrates the balancing act that businesses must do if they are to survive and prosper. On the one hand they need to stimulate sales, and on the other hand they must survive. People spend money when they have it, and they'll have it if businesses thrive, and employ them. Businesses will thrive if people spend money, and so it goes on, around and around. It's incredibly complex in lots of ways, but incredibly simple in another - our entire economy sinks or swims according to the success or otherwise of businesses, and that depends on people buying goods and services. Company Directors make commercial decisions as they see fit - if they're wrong the consequences can be dire.

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