BT will normally reduce the connection charge if you agree to an 18 month contract. The charge is levied by Openreach to ALL service providers. Its up to the service provider, how much of that charge they pass onto the customer.
Did you look on their website, it says
Getting connected
Most customers get connection at no extra cost.
Some customers may have to pay a connection fee of £40 (online special offer, normally £130) but we'll let you know once you start your order and add the special offer automatically.
£40 Online Connection Special Offer important information:
- It's an 18 month contract
- You need to make at least 10 calls per months to avoid a £5.15 monthly charge
- You can't get 3 months free on Unlimited Anytime Calls in conjunction with the Online Connection Special Offer