{"id":37763,"date":"2024-04-10T14:42:09","date_gmt":"2024-04-10T13:42:09","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=37763"},"modified":"2024-04-10T14:42:09","modified_gmt":"2024-04-10T13:42:09","slug":"isp-bt-and-ee-introduce-new-uk-pricing-policy-for-customers","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2024\/04\/isp-bt-and-ee-introduce-new-uk-pricing-policy-for-customers.html","title":{"rendered":"ISP BT and EE Introduce New UK Pricing Policy for Customers"},"content":{"rendered":"

Broadband, TV, phone and mobile provider BT<\/a> (inc. EE<\/a>) has today introduced their new \u201cclear and simple<\/em>\u201d pricing policy, which sees them move away from % figures and CPI (inflation)-linked changes for their monthly plans in order to “provide certainty for our customers on exactly what their price change will be, and when<\/em>“.<\/p>\n

In case anybody has forgotten. Back in January 2024 BT<\/a> became the first ISP to announce (here<\/a>) that, in light of Ofcom<\/a>’s recent move to BAN broadband ISPs and mobile network operators from doing mid-contract price hikes that are linked to confusing inflation and percentage-based changes (here<\/a>), they would instead a new approach.<\/p>\n

The regulator’s change was never designed to stop mid-contract hikes completely, but it did require providers to tell customers precisely what any future price increases would be when they sign up (“in pounds and pence<\/em>“), which crucially rules out changes linked to unknown future inflation values or percentages.<\/p>\n

BT<\/a> previously said they would introduce this approach from the \u201cearly summer<\/em>\u201d, but instead both they and EE<\/a> have opted to introduce it today. The exception is sibling broadband ISP Plusnet<\/a>, which for whatever reason “will follow later this summer<\/em>.” At present, this will only apply to contracts for new and upgrading customers.<\/p>\n

Marc Allera, CEO of BT’s Consumer Division, said:<\/strong><\/p>\n

“We want to act in line with Ofcom<\/a>\u2019s guidance to move from % figures and CPI-linked changes for our monthly plans and provide certainty for our customers on exactly what their price change will be, and when. So, starting today (10 April), we will introduce a new model for BT and EE<\/a> customers\u2019 price changes consistent with Ofcom<\/a>\u2019s approach that shows pounds and pence amounts in new and upgrading customers\u2019 contracts. Plusnet<\/a> will follow later this summer.<\/p>\n

From 31 March 2025, for new and re-contracting mobile customers, this annual increase will be an extra \u00a31.50 a month. It will be \u00a31.50 a month for connected devices (including laptops, tablets and smart watches), \u00a32 a month for TV customers, and \u00a33 a month for broadband customers. Out-of-bundle services will be subject to an annual 5% increase.<\/p>\n

There will be no plan increases for our customers in financially vulnerable circumstances on EE Basics or BT Home Essentials.<\/p>\n

…<\/p>\n

It is also important to point out that our price rises have not risen in line with usage. Customers’ consumption of data, across the industry, has trebled across mobile and fixed networks in the past five years alone. All this while telco services continue to make up only a small and declining share of household outgoings, representing just 3.5% of average monthly basket spend.”<\/p><\/blockquote>\n

Just to be clear on the above, a customer taking both broadband and TV would see a combined increase of \u00a35. Ofcom currently plans to confirm their aforementioned BAN sometime this spring and, allowing time for implementation, this means that it won\u2019t be enforced until sometime in the second half of 2024. The reality here is that, given Ofcom\u2019s proposed change, this outcome will soon become inevitable for all providers that do mid-contract increases (a lot of smaller players don’t).<\/p>\n

The proposed increases may potentially still come in as being above the rate of forecast inflation (CPI) when they hit existing customers in 2025 (much depends upon what inflation will be doing at that point). In theory this suggests that customers affected by the future hike may, under Ofcom\u2019s existing rules, be able to exit their contract penalty free again and switch away (or use it as a tool to renegotiate a lower price<\/a>).<\/p>\n

As we\u2019ve said before, the move to ban the current model is less about cutting customers\u2019 bills and more about making future package pricing clearer and simpler to understand.<\/p>\n","protected":false},"excerpt":{"rendered":"

Broadband, TV, phone and mobile provider BT (inc. EE) has today introduced their new \u201cclear and simple\u201d pricing policy, which sees them move away from % figures and CPI (inflation)-linked changes for their monthly plans in order to “provide certainty for our customers on exactly what their price change will be, and when“.<\/p>\n","protected":false},"author":1,"featured_media":31045,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[474,405,36,84],"class_list":["post-37763","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-bt","tag-ee","tag-ofcom-regulation","tag-plusnet"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/112247219759580273","error":""},"yoast_head":"\nISP BT and EE Introduce New UK Pricing Policy for Customers - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Broadband, TV, phone and mobile provider BT (inc. 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