EE is the latest provider to increase the cost of its telephone line rental product, with the price rising to £15.40 per month, an increase of 65p per month. The positive side is that the cost of Line Rental saver where you pay for 12 months voice rental in advance remains the same at £132 per year (£11/month).
Other prices have changed, the standard price for ADSL2+ and fibre broadband packages has increased by £1 a month for EE (monthly price ADSL2+ £6, up to 38 Mbps £16, up to 76 Mbps £26), T-Mobile or Orange mobile customers. The supplement that was paid by those who did not have a qualifying mobile phone has increased from £5 per month to £10 per month. For those in contract we believe there are no changes.
The price rises for new customers are slightly tempered by the half price offers in place currently, but we were a little shocked when we checked out the price for an EE ADSL2+ service for someone without the mobile discount and not in a low cost network area, it worked out at £31 per month and that only bought you a 20GB monthly usage allowance rather than the full products unlimited traffic managed service.
It is difficult to see how EE can compete against operators like TalkTalk, whose broadband starts at £2.50 per month plus the same £15.40 voice line rental and no requirement to bundle the mobile phone to get that price. After a dip in fixed line broadband customer numbers the provider has only just recovered to their September 2011 level and may possibly be smaller than PlusNet - but as the BT Group results never reveal the size of the PlusNet user base it is impossible to know for sure.