LONDON: Telecoms giant BT has announced it will cut the cost of its landline-only contracts by 37%, following a review from the industry regulator Ofcom.
The FTSE 100-listed company said on Thursday (26 October) that, from April next year, up to one million landline-only customers will see the price of their contracts decline by £7 from the current £18.99.
Households affected by the reduction will save £84 a year and will be protected from further price increases as rental costs are capped at the rate of inflation.
The decision comes after Ofcom launched a review of competition within the telephone industry, which found landline-only customers were getting poor value for money, compared to those who purchase landlines in a bundle with broadband or pay TV access.
That became a major concern, as nearly two-thirds of BT landline-only customers are over 65 and have never switched to a cheaper provider.
Under the BT Basic brand, the company already offers packages aimed at low income users but added it had reached “a balanced voluntary” agreement with Ofcom.
“We welcome a balanced voluntary agreement with Ofcom which means that up to 1m of our customers who don’t have broadband will receive a substantial cut in the price of their line rental from April 2018,” the company said in a statement.