Ofcom may probe BT over price increase

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UK regulator Ofcom said it may investigate BT Group Plc's new pricing plans that will increase fixed-line rental fees for customers buying services from other carriers.

BT plans to scrap standard rates for 9 million residential customers who pay £9.5 (E12.8) a month to rent a line, and move them to a package with a higher line rental but with lower per-minute call charges. Under the changes, a customer now on BT's standard rate tariff plan will see line rental charges rise by £1 a month to £10.50. About 2.25 million people who rent a BT line while buying services from alternative carriers will pay more. Most of BT's rivals use its network.

BT's fixed-line phone rivals, including Centrica Plc and Tele2 of Sweden, reportedly accused the country's biggest phone company of anticompetitive behaviour. Since facing competition for the first time 20 years ago, BT has lost almost 30 per cent of the market.