BT scraps Friends & Family discount scheme

BT admitted earlier this week that it has had to write off £340million linked to its global business.

In possibly not unconnected moves, the company has now announced that it is dropping the 17 year-old domestic discount scheme, Friends & Family as well as its BestFriend scheme.

Friends & family offers BT’s 14million customers 10% off all calls made to up to 15 landlines. Chopping the scheme is said to ‘save’ – meaning gain -  BT £250 milion. That is, of course, if all of its customers stay on.

Mark Hunter MP, who fights for consumer interests against  rising telecom charges, says: ‘It is clearly unfair to ask customers to pay for the mistakes of the management’.

BT says that the increases in these phone charges are being offset by £200million a year in other discounts – but unlike the Friends & Family type of discount, BT’s new offers will require a monthly subscription.

Experience teaches that any offer by BT is invariably of less benefit to its customers that the company’s promotions suggest – and that savings in one area will be clawed back in another. In this instance there is to be a 45% – yes, a 45% – increase in the cost of caller services siuch as ring back, call waiting, call barring and caller display and an increase in line rental charges.

Caveat emptor indeed.

Sleight of hand on BT claim to drop charges for non-geographic 0845 and 0870 numbers

BT trumpets that it has bowed to public pressure at last and is scrapping charges to the ‘non-geographic’ 0845 and 0870 numbers from 16th January 2009. These currently cost callers 5.8p a minute.

That’s the headline. The emerging picture is rather different – and very typical of BT, whose discounts and offers rarely stand up to serious scrutiny in terms of delivering what they say on the tin.

The truth of the new situation is that these numbers may be called free only by those who have an all-in monthly subscription package with – BT Anytime. This accounts for only 1.4million people. Since a large proportion of the population, angry at BT’s charges and its Customer ‘Service’ have long departed to other service providers, most will not have this advantage.

A further 4.3 million people will be able to call 0845 and 0870 numbers free in the evenings and at weekends. This is a virtually useless concession since owners of such numbers – banks, doctors’ surgeries, building societies, insurance companies and utilities -  are not normally at work at these times.

The move, such as it is, will cost BT £24million – they say – although it is hard to make this figure stand up. Charges for 0845 and 0870 numbers have come under sustained public protest. They are used by the sort of service providers listed above. These are services people need to contact on a regular basis and the high charge on such numbers were – are – seen as close to extortion.

While there are ways around having to use the numbers – and For Argyll has repeatedly advertised them – a lot of people still do not know about them or are intimidated by having to do anything that seems in any way subversive.

For Argyll has been lobbying public utility companies on the issue to get them to drop the use of such numbers – and will continue to do so.

NOTE: A regular site visitor has posted a response below – which For Argyll would wish to underline – that BTs full charges remain in place for everyone for 0871 and 0844 numbers. At up to 10p per minute, these numbers run at almost twice the tariff for the 0845 and 0870 numbers.

Survive the recession – HIE advice phoneline for businesses

Highlands and Islands Enterprise (HIE) has set up a telephone advice service staffed by business experts ready to help any size of business in any industry sector seeking advice on responding to the current recession.

The number is: 08000 884 884. Calls are free from all landlines but mobile service providers may charge. The service is available from 8.00am to 6.00pm on weekdays; and from 9.00am to 1.00pm on Saturday mornings.

HIE stresses the importance of absolute attention to business in these times – chasing all opportunities and making sure that there is a business strategy in place fit for the challenges of recession.