Water Sprite Pty Ltd

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Home Frequently Asked Questions (FAQ) Landline phones How can you not charge line rental?

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How can you not charge line rental?

Date added:
Thursday, 01 October 2009
Last revised:
never

Answer

For some plans Water Sprite don't list line rental separately on our phone bills, but that's not the same as saying that you are not paying line rental. Unlike other providers, we're going to be honest here. You are still paying line rental, in some form or other.

The way we do it (and how we believe other providers do it) is that we set certain minimum plan fees per month. That minimum plan fee includes an allowance for line rental, although the amount varies from plan to plan. A more expensive plan has a lower allowance for line rental because we are relying on the profits from the included calls to make up the difference in what we have to pay for line rental. If you don't make any calls in a month, you still pay the minimum plan fee, which is sufficient to pay for the line rental.

Where a phone service is bundled with an ADSL or ADSL2 service, we may also be sacrificing some profit from the ADSL service to subsidise the line rental. Unfortunately, our profit margins on ADSL services are not good, so you're not likely to get much (if any) discount - instead we will decrease your per-call charges.



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