BT to risk wrath of regulators with inflation-beating rise in broadband bills

BT is to hit millions of households with an above-inflation increase in their broadband bills next spring despite an urgent review by regulators into whether telecom companies are mistreating their customers. With other broadband operators likely to introduce similar price rises next year, sources said that Ofcom is speeding up a review into the small print of annual rate increases, in particular whether consumers were made fully aware that their monthly fee could soar when they signed up. A Government source said: “Companies need to think hard about the impact of price rises on hard-pressed consumers, and we urge continued focus on supporting the most vulnerable.” Mr Jansen defended the price increase, which is written into customer contracts, saying the company still offered “absolute value for money”. We are monitoring this area closely and checking that providers are communicating any price rises in line with our rules.” Mr Jansen said the company would continue to offer a basic “Home Essentials” package, which costs £15 per month, for those on Universal Credit. A BT spokesman said: “Our annual price rises are contracted and we make this clear when customers sign up.” Rocio Concha, director of policy and advocacy at Which?, said: “News of further hikes from BT will come as a shock to customers, many of whom are already struggling during the cost of living crisis.” His comments came as BT reported its first revenue growth in five years.