Ofcom announced price cuts for a range of Openreach products that telephone and broadband providers use in March, the saving for TalkTalk fully unbundled products was just 34p per month. At the time lots of coverage suggested we would see prices in the retail sector fall. We advised caution to not expect price cuts, and now we can report that TalkTalk are actually increasing their telephone line rental.
MoneySavingExpert.com spotted over the weekend that TalkTalk is to increase its line rental from £13.80 a month to £14.50 on the 1st May. Emails and letters should be going out to customers to inform them of any changes.
TalkTalk is not alone in increasing its pricing for phone services, most providers have gradually raised the price, in TalkTalk's case the last price rise was October 2011. A way to reduce the cost is to pre-pay the line rental, where paying for 12 months line rental in advance (£114) means the monthly price is equivalent to £9.50.
As with most price rises, the variation of contract should mean that if you decide to cancel the contract due to the price rise within 10 days of notification that you can cancel the contract without penalty. While many may want to vote with their feet, you need to factor in the costs of migrating to another provider, even the simplest move to another full LLU provider can incur a new activation fee, which would wipe out the saving for many months, so do the sums carefully before moving.