Capped at 10p, but will it cost more?

BT's Business Plan tariff implies that business customers will make large savings on their telephone expenses. We think that the BT Business Plan is cleverly marketed. Their new capped rate of 10p for local and national calls appears attractive although our research shows that many business customers will see an increase in telephone costs.

The reason is hidden in the small print. The 2p set-up fee for local and national calls (renamed from connection charge) means that no matter how short the call, you will be charged 2p from the moment you connect.

Information from Energis (one of the UK's largest network operators) shows that 90% of business calls are under 3 minutes and our data shows the average call duration is only 2 minutes 9 seconds therefore BT's set-up charge will actually increase the cost of many business calls.

The BT Business Plan will only make savings on local and national calls that last longer than 5 minutes.

As less than 2% of business calls last more than 5 minutes we believe the saving is non-existent. Other important factors are:

• The BT Business Plan requires customers to commit to a 1 year contract
• Customers will have to commit to a fixed spend threshold (claw backs will be invoked if thresholds are not reached)
• There is also a 3p set-up fee for international calls
• Mobile, non-geographic numbers (ie 0845, 0870 and internet access) and international calls* are not included in the cap

In Summary:

• BT's capped 10p business rate, many business customers will see an increase in telephone costs
• BT charge a 2p set-up charge for each local and national call and 3p for international calls
• The BT Business Plan will only make a saving on local/national calls that last longer than 5 minutes
• Energis figures show that 90% of business calls are less than 3 minutes
• Data shows the average duration of a call is only 2 mins 9 secs.
• BT make you sign a 1 year contract
• BT customers not achieving their fixed spend thresholds will have savings clawed back
• BT does not include mobile or non geo number (0845, 0870) in the cap.