BT ‘fair price rises’ move

Hikes to be linked to inflation

BT will raise all its prices in line with inflation once a year from 2020.

The move – affecting landline, mobile and broadband customers – marks a shift from reviewing tariffs every nine months, when some have jumped by 4% to 6% while others have stayed the same.

From next year, prices on all products will rise by the consumer prices index measure of inflation, which stood at 1.9% in March. BT said this would mean “fair, predictable, and competitive pricing”.

But on the down side in the week Liverpool and Tottenham reached the Champions League final, new boss Philip Jansen signalled its tactic of offering BT Sports free to some customers would be phased out.

“Where we have given it away for free, we will end up charging for it,” he said.

He confirmed BT would be bidding to keep Champions League rights, which cost £1.2billion under previous boss Gavin Patterson.

But he warned: “We are not gong to go nuts on it and overpay.”

He also said BT wouldn’t be adding new sports. Jansen announced plans to up investment to between £3.7bn and £3.9bn a year over the next two years, targeting six key areas. They include only having UK call centres, launching an “unprecedented” number of products, and the imminent introduction of 5G mobile services.

The firm is also also ramping up the rollout of high speed fibre broadband cabling.

Jansen upped the target for potential homes to four million by March 2021, and a possible 15 million by the mid 2020s, at a potential cost of between £6bn and £8bn if BT secured regulatory and government backing.

BT said it wouldn’t cut its dividend this year, which would have hit nearly 764,000 small shareholders. However, Jansen hinted it could be reduced in future to help fund its plans.

The group could also borrow more, although its debts already stand at £11bn and cost it £1.4bn in interest last year.