BT still has more than 80% of the market in the UK. Even with
all the cable companies and all the resellers, most private customers and small
businesses stick with them. They behave exactly the same way as the banks,
knowing that almost whatever they do, most of their customers will keep using
them. However they do continue to lose business customers and a substantial
number of private customers, who make international calls, on a steady basis.
Why, because they are never the cheapest.!
Whenever a competitor advertises their prices, they always
compare them to BT. This is because, before any BT discount schemes, BT prices
are more than absolutely anyone else. BT could afford to drop their prices
substantially, however they rely on most people paying just whatever it costs,
especially as their margins are so large. Also if they dropped their prices too
much, they could be in trouble with Oftel for predatory pricing!
BT also make it very difficult to work out how much one is
actually paying for any individual call. With their discount schemes, bundled
minutes and 'Friends and Family', it is not unusual to get a bill that is
many pages in length. However there is always another supplier who is cheaper;
even if you are a large PLC getting their biggest business choices discount,
there are other companies who will charge you a lot less.
BT has realised that they are losing a substantial number of
customers to the resellers and have consequently set up their own badged
reseller Quip. This is a similar move to BA setting up
their own low cost Airline 'Go'. They know that customers are demanding cheaper
calls so they set up a no frills service!
Because they have been
losing customers they have started selling 'Together' Packages. So whilst they
get fewer chargeable calls they can at least charge a higher monthly
rental as follows:-
