Firms warned of BT capped rates

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Technology - News
Wednesday, 20 February 2008

The Forum of Private Business (FPB) is warning many small businesses that time is running out to avoid being locked into a new contract with British Telecommunications (BT).

On Thursday 21 February customers with BT's business PSTN lines will be upgraded to its Business Line Divert service, which will commit them to a further 12-month contract, unless they opt out now.

BT has said its customers were sent a letter about the change, but many firms affected are arguing that this does not amount to consent.

Other telecommunications companies have joined forces to register an official complaint with the telecoms watchdog, Ofcom.

The complaint is being backed by the Federation of Communication Services, which has called BT's behaviour anti-competitive and unreasonable.

"This is another example of a big business imposing unfair terms and conditions in a rather underhand manner," said the FPB's Senior Member Services Representative, Philip Moody.

He warned that business owners should be very careful and scrutinise their terms and conditions when they are signing up.

"It is imperative that they take action now to avoid being tied into this contract,” Moody added.

The FPB has entered into a partnership with telecoms firm Chess Plc. The firm’s business development director Warren Pryer called BT's move a ‘stealth tactic' where BT's supposedly free offerings are not all that they appear on the surface.

"Our advice would be to carefully consider the BT Business Plan capped product because, for a large percentage of customers, the minimum call and setup charges on short duration calls outweigh any saving made by capping longer duration calls," he said.

"Even if you are spending £400k per year with BT you will be paying 4.1p per minute for local and national calls, and up to 20.43p to call mobiles, under BT's call capping," Pryer concluded.

BT has set up a special line (0800 587 1984) to field queries and allow customers to opt out. 

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