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Vodafone says it has taken the lead in removing line rental from its fibre broadband packages to modernise pricing and make costs clearer for customers. However, the change is not quite what it first appears to be.
Broadband pricing can be confusing for customers. Various fees tied to taking out a broadband package are often hidden in small print, and many people end up paying more than they expect. As someone who has recently moved and shopped for a new package, I can relate to how easy it is to miss those extra charges.
One of the biggest sources of confusion is line rental. Many consumers no longer use a landline phone, yet they still see a charge that appears to be for hiring a line they don’t need. In reality, that fee contributes to the maintenance of the network that delivers broadband.
Ofcom research from 2016 found that 73% of households with a landline used it for internet access, and 45% said internet access was the main reason for having a landline. That historical context helps explain why line rental charges have persisted even as usage patterns have changed.
In a press release Vodafone stated: “As part of the new, transparent and easy to understand home broadband pricing structure, customers will still receive a home phone service – there is just no charge for the line rental. Often seen as an unexpected, underused and expensive addition to a broadband package, broadband users are required to pay for landline connections to receive broadband internet access which is why the hassle of paying for the cost of line rental has been removed.”
The new Vodafone packages advertise fibre broadband together with landline access and no separate line rental fee. But if your service includes a landline, the cost of that connection still exists — it’s simply incorporated into the overall monthly price rather than shown as a distinct line item. In other words, Vodafone hasn’t abolished the line rental charge; it has absorbed it into the bundle price.
Ewan Taylor-Gibson, broadband expert at uSwitch, explains: “To be clear, Vodafone isn’t really abolishing line rental charges, it’s simply combining the charge into its fibre pricing. This is because broadband providers are under pressure from Government and Ofcom to change advertised pricing so customers see a cost per month that includes line rental, so Vodafone is getting a head start on its rivals.”
Vodafone should be credited for offering a clearer monthly cost that is easier for customers to understand. Still, the marketing line that it has abolished line rental is misleading — the charge remains, just less visible.
The claim to be the first provider to remove line rental is also not fully accurate. Virgin Media, which owns its own fibre network, has long incorporated network upkeep costs into its advertised prices in a similar way to Vodafone.
Taylor-Gibson adds: “Compared to other fibre deals on the market, Unlimited Fibre Broadband 38 is competitive, with the only frustrating thing being that it ties users into an 18-month contract – longer than the current standard.”
Do you think it’s time line rental fees disappeared entirely? Let us know in the comments.