Broadband Providers to Hike Prices at Double Inflation Rate

BT to Introduce Clearer Pricing Plans, Ofcom Considers Banning Inflation-Linked Increases

Major broadband providers including BT, Vodafone, and Three are set to increase prices at almost double the rate of inflation from April, raising the average annual bill by £27.
BT has announced it will scrap its policy of setting price increases against inflation, instead opting for a minimum increase of £1.50 and £3 for mobile and broadband users respectively each year, starting from the summer.
Ofcom, the telecoms regulator, is considering banning inflation-linked price rises and has launched a crackdown on such increases due to concerns that customers do not understand what they are signing up for.
Despite BT's changes to its pricing structure, the planned price increases for this year will still take place before the new policy comes into effect.
Analysts suggest that with inflation likely to fall, average price rises could end up higher than they would have been under the original methodology.