FOOL'S EYE VIEW
Talk Down Your Phone Bills

By Jane Mack (TMFJane)
June 29, 2004

Every now and then, usually about once a fortnight, I get afflicted with a condition that my husband likes to call 'Phone Headonism' (sic). I get my phone head on and, armed with a hefty glass of wine and a packet of cigarettes, I proceed to ring an assortment of family and friends for a series of lengthy chats.

It happened again last night and, as usual, I started with my long-suffering father (I really enjoy my conversations with him so they tend to go on a bit). After discussing the life and times of the late and, we agreed, much lamented actor, David Niven and comparing his charms with those of Errol Flynn and Clark Gable, I then moved on to my brother (loft conversions) and three friends (house prices, Tim Henman and the snob value of shopping at certain supermarkets). I stopped at about 10pm. 

This morning I thought it might be a good idea to dig out my latest BT phone bill!

I was pleasantly surprised to find my evening and weekend 'Phone Headonism' sessions throughout May had cost me precisely £1.94, which I thought was rather good value considering how much I like to talk. However, when I looked more closely, I realised that I was paying way too much for my daytime and mobile calls and that I could get a much better deal elsewhere.

According to the price comparison website, uSwitch, BT seems to have sparked a bit of a telephone price war over the last three months. Back in March they announced plans to abolish its standard rate for residential customers and introduce a simpler range of low prices. It provoked a flurry of price cut announcements from several other providers.

Reductions for some of BT's packages were implemented in April but the main change comes this week when existing standard line customers join the 5 million customers already on BT Together Option 1. From 1st July Line rental for Option 1 will fall by £1 to £10.50 a month and evening and weekend calls made in the UK will cost 5.5p for up to an hour instead of 6p. Other operators will introduce their new packages on the same day.

Uswitch says that the average BT customer should see savings of at least £24 a year but their checks have revealed that there are quite a few phone operators who offer better value for money for most people. For example, a high user who makes up to 15 calls at all times of the day, including a few to mobiles, could save as much as £78 a year.

Average users who generally make around 3 calls a day can still save too according to uSwitch's research:

Supplier	Tariff	Annual Bill
One.Tel	StandardUKTalk	£222
Tele2	Standard	£227
Just Dial	Standard Online	£230
TalkTalk	Talk 1	£232
Sky Talk	Standard	£235
British Gas	EveryCall Choice 1	£243
Tiscali	Everytime Saver	£243
BT	Together Option1	£244
Equitalk	Direct	£255
Telco	FREETALK Option 1	£257

Unfortunately, as I have found to my cost this morning, the telecoms market is desperately confusing. It took me ages to double-check the various phone operators on the list. Thanks to differences in billing, tariffs and discounts, it is still pretty difficult for individuals to compare costs not least because it doesn't just boil down to how many phone calls you make a day but how long you talk for. (I have been known to have a three-hour phone conversation with my dad!)

For example, in theory I'm an average user but in practice I'm actually a high user because about half my phone calls tend to be long ones so the minutes count. But considering my monthly phone bill ranges from £35 - £55 a month at the moment (including rental), it looks as if I should be looking at moving to One Tel. If I watch the calls I make to mobiles, I could probably get my phone bill down to less than £25 a month.

From the looks of it, leaving BT is probably still the best option for most consumers, including me! If you want to check uSwitch's price comparison calculator, make sure you wait until Friday by which time all the new price updates will have been implemented on its website.

Check out uSwitch for savings on telephone and other utility bills.