Hi Jason,
I'm in the same situation. I've contacted BT who insist that if you want them to install the line for the £125 fee, you have to take out a 12 month contract with them for the telephone line rental too. In an ideal scenario, I'm trying to achieve the following:
Install a telephone line (even if that does cost £125 one off fee) and then sign up to Tiscali Telephone, broadband and TV for £15.99 a month.
Is there a cheaper/ better way?
Thanks