With BT increasing its line rental by a £1 per month for its residential customers this month, many businesses will be reminded of the increase they had to swallow on August 1 this year.
While nearly 10m homes are now facing this £1 increase in their monthly line rental, businesses across the UK have been finding extra funds for the last four months to pay for an average 5.5% price rise.
Before August 1, we advised businesses to consider jumping the BT ship to seek out deals from telecoms suppliers that offer a fixed rate for the duration of their contracts.
Price rises are often not budgeted for which mean finance directors have to find ways of absorbing this extra outlay.
The only way to ensure that these price increases do not become a financial headache is to enter into a fixed rate contract.
These are not as frightening as they seem. The price of your lines will simply remain constant throughout your contract for say two, three or five years.
And line prices will continue to go up. It’s not like a mortgage where interest rates determine how much you pay.
However, for some businesses there is a sense of distrust and fear about moving away from BT. The telecoms giant is a trusted supplier.
But the reality is that business telephone line suppliers simply resell BT lines, so you get the same quality product, but they can choose how they charge you while often offering a more familiar, customer-focussed, account management relationship due to their smaller more locally based service desk.
So, if all the news items about this month’s domestic price rises has triggered unpleasant memories of August 1, start looking around for an alternative fixed rate contract today.