It’s all BS from BT (trust me on this) connection fee should be free, BT Openreach who maintain the lines and infrastructure are a completely separate entity and company to BT Retail, so lines should and will remain on the OpenReach network, few providers/resellers (as this is what BT Retail are) do take the lines of the network LLU’d (Local Loop Unbundling) this is to run a cheap broadband down the line, Virgin/AOL/Tiscali being the key players for this. BT Retail have recently put there prices up (30p on line rental per month, and 9% on call charges) just check your next bills. There are a whole host of other resellers/providers out there who can offer better deals and fixed pricing. In answer to the OP’s original question BT can charge this as it is contained in the small print on their contracts, but good luck trying to read through these. My advise is to leave them as soon as you can, my email is n profile if you want any other advice. Oh and dont get me started on rolling contracts…
David
(Field Sales Manager for an independent telecoms advisory company)