Buyers Guide

A prefix code is simply a code that you dial before the number you are calling. This diverts the call from your line provider to your call provider. You are then billed by your call provider for that call. Being a manual process, it is more time consuming than alternative methods and it is easy to forget to dial the prefix code.

However, if you want to use a particular provider for a particular call, using a prefix code is the ideal choice. For example, a particular provider may offer the lowest rates to a particular country that you are calling.

Cable providers were the first to compete with BT. Today, the main cable company is Virgin Media. Virgin Media was formed out of a merger between Telewest, ntl and Virgin Mobile.

A cable company installs a new line into your home and does not use the BT network at all. You can enjoy telephone, digital television and broadband through cable.

Local Loop Unbundling (LLU) is a relatively new process whereby a provider takes control of part of the network and BT retains control of the remainder.

An LLU provider has to physically install equipment into the local BT telephone exchange. This is mainly used for broadband and allows providers to decrease their reliance on the BT network, enabling them to offer faster speeds at a lower monthly cost to customers.

It is possible to route telephone calls through a LLU network as well as broadband. Bulldog is the only major provider to offer this kind of service at this stage.

Carrier Pre Select (CPS) is the most common method of a provider transferring customers' phone calls through their network.

With CPS, when you make a phone call, the call is transferred from BT via the call provider's network to the destination number automatically. There is no need for an engineer to visit the customer's house to set it up. It is a seamless, automatic process.

In the past, if you wanted a phone line with a provider other than BT, you had to be lucky enough to live in a Telewest or ntl area. Telewest and ntl both have their own network and therefore can install a line into your home. Now, it is possible to pay line rental to a provider even if they do not have their own network. This is called Wholesale Line Rental.

The line is still owned and maintained by BT. The alternative provider pays BT to use their network as a "wholesale" customer. The alternative provider then charges you the line rental and you only have to talk to the alternative provider and not BT. If anything goes wrong with the line, you call the alternative provider and they will sort it out.

This creates competition in line rental charges as well as call charges. You can pay line rental at a lower cost than you would to BT. It also means that you no longer need to receive two bills, one from your alternative provider for the calls and one from BT for the line rental. Now you can receive one bill from the alternative provider for both.

There are a handful of UK companies that offer Wholesale Line Rental, including TalkTalk, Post Office and Homecall.

There are six main alternatives to a standard BT line: wholesale line rental, carrier pre selection, local loop unbundling, cable, autodiallers and prefix codes.

It is incredibly easy to switch home phone providers. Since the deregulation of the telecoms market in the 1980s, a large number of low cost telephone providers have emerged in the UK. All of them are trying to attract customers and are therefore offering very competitive deals.

There is no reason not to take advantage of this competition and switch providers on a regular basis to ensure you are always getting the best deal. It is quick and easy.

Unlike broadband and mobile contracts, there is no need to obtain a code from the provider that you are leaving. You simply need to give your details to your new provider and they will take care of everything. The switch over process takes 10 to 15 days. You will be notified in writing of the switch over date.

There are different types of packages available. We will take them in turn:

Pay as you go

With a pay as you go type package, you pay for all of your calls. There are no free or inclusive minutes. This kind of package is ideal for low users.
Free evening and weekend calls

With this kind of package, you can call UK landlines (01 and 02) on weekends and/or evenings for free. Often you will have to pay a monthly fee for this package, but some providers will offer free weekend calls with no monthly fee. The free calls do not include mobiles, international numbers or non geographic numbers such as 0845, 0870 or 0900 calls. This would suit a medium user who is not home during the day and makes most of their phone calls during the evening or weekends.

All inclusive

All inclusive packages include all your UK landline calls for a fixed monthly fee. This means you can call anyone in the UK at any time of the day and this will not effect your bill. You will still have to pay for mobiles, international numbers or non geographic numbers such as 0845, 0870 or 0900 calls. This would suit a heavy user who will make phone calls throughout the day.

Your home phone is one of your essential services. Most people simply use the phone without really thinking about it. However this is not the wisest approach as a lot of money can be saved by ensuring you are on the right package with the right provider. You could save hundreds of pounds per year.

Switching to a new home phone provider is quick and easy. In the vast majority of cases, you do not even need to contact your existing home phone provider.

Home Phone buyers guide.