Ofcom to probe soaring rental fees for landlines

The telecoms watchdog today launched an investigation into phone rental fees, fearing the elderly are being ripped off by the big players.

Landline rents are up by between 28% and 41% in recent years, suggesting the companies are not competing effectively, or ramping up these fees to subsidise cheaper internet deals.

BT and Virgin Media have the highest phone rental fees, says Ofcom, but TalkTalk and Sky are not far behind.

Jonathan Oxley, Ofcom’s competition group director, said: “We’re particularly concerned for older and vulnerable customers, who rely on their landline and are less likely to change provider.

“So we’re reviewing this market to ensure these customers are protected and getting value for money.”

The elderly are also less likely to take deals that bundle landlines with internet and TV services, Ofcom said.