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Why are we paying more for landlines?

25th October 2016

Some interesting numbers came out from the most recent Ofcom report regarding the average price paid for each minute used on a mobile and landline in 2015.

Back in 2010, the average price of each mobile and landline call was equal at just over 8p per minute. Since then however, there has been a significant shift in the average price of a landline call so that each minute now costs on average 11.7 pence and we can expect this to keep on rising. The main reason for this is the continued drop of landline usage over those years arising in another 10% decline in 2016 whereas the price consumers pay for a connection has remained consistent.

Compare this to the average price of a mobile minute which has remained consistent to the 2010 level at 8.1p as operators have been able to hold prices. So why do we continue to use landlines when there is now a significant price difference of over 40%? Is it the security, or have communications providers just been very smart in bundling services such as mobile, broadband and TV into one package that consumers are baffled by what they are paying for?

Like many things in life, if you have the time to research and deal with the problem then there are savings to be made. By removing your landline and switching to mobile use only there are significant savings to be made for price of your telephony. Whether you are able to do it emotionally is another thing.

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