BT modifies its policy on mobile and broadband price increases

BT has announced that it will no longer implement mid-contract price increases linked to inflation, following a threat from telecoms regulator Ofcom to ban the practice. BT had been one of several providers informing customers that the cost of their mobile and broadband services would rise by inflation plus a fixed percentage. Ofcom argued that this was confusing and called for price rises to be clearly stated in pounds and pence. BT will implement this change from summer 2024, with mobile customers seeing mid-contract price increases starting from £1.50 and broadband customers facing rises of £3. BT consumer chief Marc Allera stated that the company is committed to driving meaningful change alongside policymakers. The issue has been exacerbated by recent high levels of inflation, resulting in significant price changes during contracts. Ofcom is yet to publish its final decision on banning inflation-linked price rises. Analyst Kester Mann called BT’s move a smart one, anticipating the likely ban on the practice.