BT has previously raised prices to increase the margin for other wholesale products, and the same is now happening with the basic BT line rental. BT customers using BT Option 1 for their line rental will see a rise of 50 pence per month from January 2006 (full details of the rise are on the Ofcom website). BT customers using Option 2 or Option 3 will be unaffected by this price rise.
This rise in line rental that has been approved by Ofcom is to increase the margin available for companies selling products that use the wholesale line rental (WLR) product. WLR exists so that companies can provide a way of billing for telephone calls and line rental in a single bill, without the consumer paying anything directly to BT. The price of a WLR line dropped from £9.24 to £8.74 per month in August 2005.
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