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BT introduces clear prise rise mechanism

BT has introduced new terms and conditions that will affect how price increases are made to home phone, broadband and mobile customers.

From the beginning of 2020, BT price rises will be linked to the CPI rate of inflation. BT customers will have their prices increased in March based on the CPI recorded in January.

A BT spokesperson confirmed the CPI-based price rise would also affect extra charges such as out of allowance calling costs and optional add-ons as well as the normal monthly charges for landline, broadband and mobile services.

At the same time, the company said there wouldn't be any increases to home phone, broadband or mobile plan prices in 2019, although BT has remained tight-lipped over possible price changes for its TV service, which this year will see additional content from Sky being added.

For much of the past decade, BT has embarked on an annual price rise carousel, which has seen prices for some products rise steeply above inflation. In recent years, some prices have increased more than once in a 12 month period. Competitors have usually followed, before the whole cycle started again. This resulted in Ofcom introducing new rules allowing customers to leave if a provider increased prices mid-contract, although it is harder for customers to leave under these rules if a price rise was built in to the contract the customer agreed to.

The change to BT's terms affect all new and recontracting customers from today.