TalkTalk spark ignites price war

As TalkTalk announces price reductions across its call packages and offers customers free international calls, Chris Frost, Communications Expert at price comparison and switching service uSwitch.com, comments on today’s move from TalkTalk to beat BT on price : “BT last week announced a series of price changes in a bid to reduce its decline in home telephone market share and to keep its millions of loyal customers happy. As we predicted, hot on the heels comes today’s announcement from TalkTalk to not only reduce their line rental charge but to also introduce free international calls to those signing up to a 12 month contract.

“This move may well be the spark that ignites a price war between home telephone providers as they compete to gain and retain customers. We are now in a climate where bundled deals with broadband, home phone and digital TV offer great value to consumers who want all three products, but it is great news that those on standalone deals are now getting better value for money.”

“TalkTalk made a pledge to ‘always offer better value than BT’. Although both companies now have the same line rental costs for their basic packages at £10.50 each, TalkTalk is now cheaper than BT across the board, living up to its promise.

“It seems that TalkTalk is also keen to beat BT on the cost of international calls. For just £2.50 a month, half the cost of BT’s International Freedom Package, customers can sign up to a call plan allowing them to make free calls to 30 international countries to stay in touch with friends and family who are overseas. It should be noted though that the BT deal covers calls to 36 mainland countries instead of TalkTalk’s 30.

“TalkTalk is also being careful not to penalise their customers who do not have internet access, as unlike BT, they will not be charging customers who receive paper bills.”