[Wylug-discuss] Re: Linux-friendly POTS-to-VOIP-to-POTS

[gARetH baBB]

On Thu, 13 Oct 2005, John Hodrien wrote:

> > LUS rates do not cover BT costs, it is a subsidised tariff agreed with
> > OFCOM/OFTEL for a particular purpose under the USO.
> 
> I may have misworded the scheme.  They used to advertise a low usage 
> scheme where if you spent less than x per month you could pay less line 
> rental.  It may not exist now in its previous form (this was about 5 or 
> 6 years ago) but it definitely wasn't what you're describing.

That is LUS.

http://www.serviceview.bt.com/list/current/docs/Cust_Opts_Res.boo/3226.htm

I suspect most "LUS" people are now on In Contact, which isn't the same 
mechanism as you describe, but has the same aim.

To quote OFCOM on "LUS":

"One of the key strands of USO is the requirement on BT and Kingston to 
ensure that all customers can afford to obtain and retain telephone 
service.

To achieve this goal, BT and Kingston provide special tariff schemes that 
target customers with low incomes. BT currently offers the Light User 
Scheme (LUS) and In Contact (IC); Kingston offers Basic Call and Basic 
Contact.

BT's existing schemes are not means tested and use a proxy of low use in 
order to attract low income customers. This does not work perfectly: 
around 60 per cent of current LUS and IC members are from low-income 
households."

There are other public OFCOM papers which document how call charges in 
general have subsidised rental, and the moves BT have made to rebalance 
this.

"LUS" customers could be argued are being susidised twice, they pay little 
and have lower line rental - but the USO aim of keeping low income people 
in the loop as it were, is where this comes from.

> You reckon the LL costs 120 quid a year to maintain?  Any references for that?

120 quid is BT rental, which is not quite the same thing - that has to 
include billing, accounts, customer service, bad debt provision, phone 
books, marketing etc. etc. BT do have the benefit of economies of scale 
though.

There have been various recent OFCOM papers of LLU and WLR, WLR has been 
passed "fit for purpose", and Wanadoo are quoted as saying they are happy 
with LLU now - if they're aiming for 50%+ customers on LLU, and others are 
rapidly expanding LLU provision they must think that the final costs 
derived are fair and reflective.