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BT changes how broadband price rises calculated

BT has announced changes in how it will work out the extent of future price rises for its broadband and phone customers, which may mean customers enjoy smaller increases in the coming years.

According to a report by ISPReview.co.uk, the provider has updated its terms and conditions for new contracts to specify that future prices will be tied to inflation, and will increase in line with the Consumer Price Index (CPI) each year.

This means that the days of the company announcing significant price hikes every nine months or so may be over. Until now, these announcements have typically seen costs increase by around four to six per cent.

By comparison, the most recent CPI figure, for November 2018, stood at 2.3 per cent, down from 2.4 per cent in the previous month. ISPReview.co.uk noted that some economists are forecasting more falls in the coming months, and possibly even a drop into negative territory depending on factors such as Brexit.

This could therefore mean that BT broadband and phone users will see much smaller increases than they are used to - although of course, if circumstances change and inflation rises, this would also be reflected in their bills.

In a statement, BT said: "We‘re committed to providing our customers with the best experience, service and value in the UK and that is why we are leading the way in the industry. From 2020 we will link any future price changes to the Consumer Price Index (CPI) inflation rate. We will not be increasing prices for BT broadband, home phone and mobile plans in 2019.

"While price changes are sometimes necessary to keep up with increasing costs and to provide the best possible products and services, we know that customers want greater clarity and predictability about any price changes. We’ve listened to our customers and from 2020 we will be moving to once yearly price changes for BT broadband, home phone and mobile customers."

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