BT updates its price-hike policy for broadband and mobile.

 BT is giving up on inflation-linked mid-contract pricing increases after the telecom regulator, Ofcom, threatened to outlaw the practice.

It is among the few suppliers informing clients that the price of their broadband and mobile plans will rise by a predetermined percentage plus inflation.

However, the regulator stated it was unclear and that price increases were to be stated "in pounds and pence."

According to BT, the move will take effect in the summer of 2024.

Marc Allera, the head of BT's consumer division, stated in a blog post that this means mid-contract price increases for mobile consumers will start "at £1.50," while increases for broadband subscribers will come in at £3.

"We are continually thinking about how we - and the wider industry - can play our part alongside policymakers to drive meaningful change, at a time when we can see so many people under pressure," added Allera.

"In real terms, people pay less for their connectivity now than they ever did and get much more" , he stated.

Inflation, or the general rate of price increases throughout the economy, has been much more noticeable in recent years, which has made the issue worse.

The significant rise in the cost of living in 2022 and 2023 has caused prices to rise more than in prior years, leading to significant adjustments in the middle of sales.

For instance, in March 2023, BT raised prices by 14.4%.

At the time, Ofcom said that about 36 million mobile customers and 4 out of 10 broadband users had contracts that were vulnerable to price increases based on inflation.

It has not yet released its final ruling on its plans to outright outlaw the practice.

Kester Mann from CCS Insight, an analysis group, said, "This is a smart move from BT, anticipating the likely ban on inflation-linked pricing after Ofcom opened a consultation into the controversial practice late last year."

Mr. Mann drew attention to the fact that BT's statement was made less than twenty-four hours before many UK carriers confirmed their 2024 yearly pricing rises.

"This is a delicate topic as households continue to grapple with cost-of-living concerns," he stated. "The ball is now in the court of the UK's other operators, some of which will probably quickly follow BT's lead."