Why is B.T. complaining about the rise in business rate?

Today BBC News reports:

BT has condemned “excessive” new business rates, which it says will push up the cost of broadband services.

The charges start from 1 April 2017 and will increase BT’s annual valuation fourfold, from £165m to £743m.

“We are extremely disappointed by the new rateable values, which are clearly excessive,” BT said.

The public may have some sympathy with B.T., but when you have some of the facts then perhaps B.T. should shut up!

For example, did you know that BT Wholesale sells minutes to other telephony companies for 0.1p per minute (£00.001) or less? You may not see the problem with that until you start to think about the resale value from B.T. to its own customers. You see, B.T. charges 11p (£00.11) per minute for standard UK landline calls which means an 11,000% profit per minute.

To me B.T. has nothing to complain about, for years they have been slow to invest, they have little in the way of true productivity when it comes to their staff who string jobs out for as long as possible (a friend of mine used to work for Open Reach and left because in his own words “I couldn’t work that slow”).

The B.T. Fibre Optic Broadband roll out is a half cocked affair; Virgin rolled out Fibre Optic Broadband in many Cities around the UK and they did it correctly providing fibre to the house.

B.T. Has rolled out Fibre to Cabinet leaving the old copper wiring to carry the signal the rest of the way down the street. In some streets this means that those whose houses are close to the Fibre Cabinet have speeds of 70-80 Meg download and up to 1 Meg upload whilst those at the other end of the street might have 50 Meg download and 0.5 Meg upload speeds.

Now I fully understand that the investment in Fibre Speed may be expensive due to cabinet and labour costs, but the fact of the matter is; B.T. Has been raking in the profits for years. This writer is frustrated with the charges that they pass on to the end user, in particular the pure profit making “scam” type of add on costs.

Why have I used the word Scam above? Simple, because of the connection charge. You are being billed before you have even opened your mouth. As soon as that phone gets answered you are billed and then the per minute charges start to roll on. Isn’t it about time B.T. dropped the connection charge and started per second billing?

This writer is a keen believer in large turnover and small profit, I also believe that B.T. could use the Fibre Speed to provide VOIP calls at much lower costs. I know a lot about VOIP as I have used it for 10 years in my business. In fact I can offer VOIP minutes to landlines at 1p per minute and to mobiles at 4p per minute, what’s more I am happy to do so.

B.T. is a big, greedy, slow moving, lummox of a business that needs to change it’s operating practices.

Did you know that Plus Net is owned by B.T.? I moved from B.T. a year after we moved to our current house. Our phone and broadband bill dropped from a typical £70 per month with B.T. to a fixed £25 per month with Plus Net.

British Telecomm is a disgrace, it is only my opinion of course but perhaps BT actually stands for Bloody Terrible!

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