BT abandons above-inflation price rises for mobile customers

BT has announced it is scrapping above-inflation price rises for mobile and broadband customers.

The parent company of EE revealed it will introduce the change in the summer this year after telecom companies were criticised for hiking up prices amid the ongoing cost-of-living crisis.

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Following calls from regulator Ofcom, telecom customers must be told upfront in pounds and pence about any price rises their provider includes in their contract.

As a result, EE has said it has “listened and taken on board” the request and will be offering “a clear and simple view of any changes in pounds and pence”.

The current model adjusts customer pricing annually by the Consumer Price Index (CPI) rate of inflation + 3.9%, however, this will be replaced by a new model no later than four months after Ofcom finalises the decision, BT revealed.

In a blog post, BT Group’s Consumer Division CEO, Marc Allera, said: “Our annual price change is never an easy conversation to have with customers, particularly when so many people are dealing with the increasing cost of living.

“But it is a necessary conversation to have to help us manage our own rising costs and investments we’re making into networks and customer service, while also protecting those customers in vulnerable circumstances, suffering from financial hardship or digital exclusion.”

The rise for new and re-contracting mobile customers is expected to be from £1.50, while broadband customers can anticipate a £3 increase.

Until then, the annual price increase on 31 March of CPI + 3.9% will go ahead as normal.

However, there will be no changes for customers in financially vulnerable circumstances on EE Basics or BT Home Essentials.

Allera stated: “The cost of living and a digitally inclusive society is now more relevant and important than ever.

“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.”

The news comes as Allera recently revealed customers are “not sentimental” about losing the BT brand following its £12.5 billion acquisition.