BT hikes broadband prices again...
BT has raised broadband prices for the third time in 18 months
broadband customers will face an inflationbusting additional £2 per month on copper connections, while fibre customers will see monthly bills rise by £2.50. BT Sport packages are also going up by between £2 and £3 a month.
The telco looked to justify the price increases – which follow similar bad news for consumers in April this year and July 2016 – by saying it was investing in infrastructure and that many customers would see improved services.
“We’re investing more than ever in broadband, including boosting the speed, data and cloud storage of millions
BELOW Come January, it will cost an extra £2 to £3 per month to watch Rio on BT Sport
of customers,” the company boasted in a statement. With customers theoretically able to switch away from their ISP without penalty over mid-contract price increases, BT was also quick to highlight incentives to remain, although these would lock consumers into new contracts. “Customers can stay on the same broadband deal for the same price as they were paying before this change, if they sign a new contract,” BT said. Analysts warn that consumers should brace themselves for further price rises in the coming months as BT – like other ISPs – faces higher regulatory costs. Changes to advertising rules and the age verification system aimed at controlling porn access will put further pressure on ISPs’ margins. “I expect prices to continue to edge up at retail level, although the Ofcom-led reduction in 2018, if it happens, may mean the rises are negated,” said Andrew Ferguson of market watcher Think Broadband.
“Why will prices continue to rise? Because changes to regulations on the way average speeds and maybe peak time speeds can be used in advertising will mean ISPs will need to tweak services to get better results in [speed test] reports,” Ferguson said.
“With the 18+ verification system, in 2018 providers are expecting to have to run more blocking and thus need to ensure existing systems are up to the job. It’s not going to be a massive cost burden, but all these 5p-and-10p-per-customer things do add up.”