Best time to transfer out/cancel?

[old_email]

My line rental falls due next week.  I usually take the line rental saver option which will then take me to March 2022.

My ADSL/FTTC broadband is on a 2year deal, and because of various deals etc is no longer in sync with the line rental (I took on BT for both services on moving to this property a few years ago), and runs out in May 2022.

What happens if I decide not to continue with BT next year?  Do I pay monthly rental to May, or do I cancel in March and risk incurring penalties on the Broadband deal (broadband+email only, no TV or other services).

Or is there something I should look at before renewing the line rental?  I'm ok with staying another year but don't want to do something that proves more costly next year if I then decide to take an alternative route.

[imjolly]

your line rental is included in your broadband package and has been for good few years now.  however your line rental saver is renewable annually and up to you if you renew it or not.  an interesting fact is that PLUSNET have discontinue LRS and it would not surprise me if BT do not do the same bearing in mind PLUSNET are owned by BT

[old_email]

If it is included then why are the contract periods different and why are the two itemised separately?

I gave the dates in my OP.

[imjolly]

the LRS is an annual contract and your bill shows the full price and then you get a reduction as you have LRS.  That was always the problem with LRS it never seems to coincide with your broadband package renewal date

[old_email]

My broadband has been on 18 months deals until the last one, when I was offered a two year deal at the same rate (though I lost weekend calls in the process).  So as far as I know I'm paying £x/month until May2022 regardless.

If I decide not to continue next year do I simply not renew the line rental and there are no penalties to pay for not fulfilling the 2 year broadband contract? 

[pottyperson]

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@old_email wrote:

If I decide not to continue next year do I simply not renew the line rental and there are no penalties to pay for not fulfilling the 2 year broadband contract?

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Yes. LRS is simply a means of paying in advance with a discount, the full monthly cost being deducted from each bill for the period of the LRS. If you don't renew LRS, all that will happen is that the monthly deductions will cease.

[NeilO]

Hi @old_email You're under no obligation to renew your line rental saver when it finishes. This is simply a means to pay your line rental charges upfront for a year and a discount is applied for doing so. If you don't renew it the line rental charge will be added to your bills and the discount will stop.

Line rental saver is separate from your broadband contract, so if you've agreed to a broadband deal that doesn't finish until May 2022 that will remain in place and there would be penalties for leaving before then.

I hope that's clearer but if you've any questions let me know. 

Thanks

Neil

[old_email]

Thanks @NeilO 

To be clear, my line rental concludes on 11 March 2021 so if I take another LRS that will take me to 11 March 2022.  My two year broadband deal takes me to 31 May 2022.  So if I want the best time to transfer out if I've understood you correctly:

i) from Mar 2022 I opt for the standard line rental which I will have to pay for 3 months by Direct debit

or

ii) I cancel the broadband deal on 11 Mar 2022 and incur extra payments.  What would they be?  Let's say the broadband deal is £5/month.   Do I end up paying  the 3 x £5? 

[NeilO]

Hi @old_email Yes that makes total sense, I think option 1 would be the best choice as you wouldn't be paying any cancellation fees. 

I got the below example from our Tariff guide

What you're charged depends on how long is left to run on your minimum contract period, factoring in any discounts you may have. The following steps are used to calculate the ETC:

 We take the remaining amount you were due to pay up to the end of the minimum commitment period
 We take off VAT
 We take off the costs we save (e.g. in payments to suppliers) as a result of you leaving early
 We give a 1% discount for early receipt of your payment
 We add VAT to the final ETC

You have a broadband and line rental package for £45 a month, with a monthly recurring discount of £10, which means you are contractually committed to pay £35 a month. You have four months left in your minimum commitment period.
 We multiply £35 (£45 - £10 discount) by four, totalling £140
 We take off VAT, reducing it to £116.67
 We take off the costs we save (for example, £15 per month, multiplied by four = £60), leaving £56.67
 We discount by 1% for early receipt, making £56.10
 We add on VAT, making your final ETCs £67.32

[old_email]

@NeilO 

Thank you.

From my bill I have a monthly package price which is reduced by the line rental paid in advance and then a discount for my broadband deal.  So if I finished before the broadband deal ended I would have to pay the full undiscounted amount for the broadband not used (page 244 of 257 heavens above!).  3 months at full price. 

Or I have to pay full line rental for 3 months, half a month of which I wouldn't want if I've moved.

It seems therefore that the accounting system is geared to penalise one way or another as it is impossible to get BT to align the broadband and line rental, though I was nearly there when on 18 month deals as they nearly coincided every 3 years. 

Have people not complained to Ofcom?  Contract entrapment? I was lucky it seems to have got my 2 year deal brought forward from November to May last year.  

We took on the phone + broadband 6 years ago as a moving house customer having been with BT since 1983 from the previous property.