BT increases home broadband and landline prices by up to 6.5%

Leading UK telecommunications provider BT is planning to raise prices for its home phone and broadband customers, with prices rising by up to 6.5%. The price increases are set to come into effect later this year, and will affect many of the company's 7.3 million customers. 

The cost of a BT landline, which is required for customers taking its broadband service, will increase by £1 to £16.99 per month. This means that customers will now be paying £203.88 a year simply for the facility of having a home phone line, on top of any applicable call charges, or increases fees for other services, such as broadband internet. 

In fact, the company is also increasing its broadband charges by as much as 6.49% which, as The Guardian notes, is almost four times the current rate of inflation. BT chief executive John Petter nonetheless insisted that his company is "sensitive to the tough economic times". 

There will be some opportunities to save, however. Customers paying for a full year of landline service in advance will be charged £170, saving over £30 a year, and BT has also launched a new 'Home Phone Saver' tariff for £19.99 a month. The new plan, intended for the 2.6 million customers who only use a landline with no other BT services, includes the monthly home phone charge, along with free calls to other landlines.

BT Basic, the company's affordable plan for low-income customers, will not be affected by the price increases, and will remain at £5.10 per month. 

The new pricing structure will come into effect on December 1st. BT advises that if you are unhappy with the price rises, "you may cancel your services without penalty", as long as "you contact us within 30 calendar days of receiving your personal notification" of the changes. 

Source: BT via The Guardian | image via BT

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All these price increases but where's the improved performance. For the past eight years speed hasn't increased from 2mbps. (My phone has faster Internet)

I've been with three different isp and they all say the same. 'That's the fastest speed in your area'. I live in Birmingham the second biggest city in the UK. So I would hate to live in a more rural part of the country.

Arron said,
All these price increases but where's the improved performance. For the past eight years speed hasn't increased from 2mbps. (My phone has faster Internet)

I've been with three different isp and they all say the same. 'That's the fastest speed in your area'. I live in Birmingham the second biggest city in the UK. So I would hate to live in a more rural part of the country.

Rural Norfolk here, 5mbps \o/

"...increasing its broadband charges by as much as 6.49% which...is almost four times the current rate of inflation"

Considering inflation is an annual rate and this is a one-time increase, it is not very meaningful to compare the two. When was their last rate increase? If it was more than 4 years ago, then this increase is actually LESS than the rate of inflation.

BT have such a monopoly and have been ripping people off for years. Ofcom doesn't seem to give a crap either. Unless you have cable in your area you have no other choice :(

xrobwx said,
Hmmm, I was led to believe that the US only suffered these problems.

Pfttt bruh, my internet is getting 300mbps later on and I'm still moving on to another service that will give us Gigabit internet. We're fine over here.

least for now you get BTsports 1&2 for free and ESPN. about £13 a month with out broadband

don't know if that'll be the case next year whey the exclusive UEFA rights kick in though.
bet sky are hoping it's not the case.

After reading this article (and others) there is something I don't quite understand:

Why are internet services slow and expensive in the UK?

In Romania I pay around £9/month for a subscription that includes fixed and mobile phone, a so called unlimited mobile connection (drops to 256 kbps after the first 15 GB), Cable TV, a 30 Mbps fiber optics connection and a 1000 Mbps metropolitan connection (my router can't even reach 1000 Mbps).

No predefined tiers, plans, whatever... Just went to the ISP's website, selected the options I wanted and 4 hours later I was online...

Because:

a) Wages in the UK are like 7x higher than Romania so stuff costs more.

b) The UK pays in about 4 billion euros net to the EU budget while Romania takes out about 1.5 billion. Might be part of the reason your infrastructure is improving so rapidly...

So generous, you can't even manage your own people. Love it.

Reminds me of home, where we build schools in other countries while we close them down in our own...

Holy crop, that's insane. They should do away with the requirement of a phone line for DHL, like they have done here in Denmark. This is just shafting the customers.

Indeed, I wish Ofcom would step in and force BT to offer broadband without a landline. Virgin Media are the only ones in the UK who offer it at the moment, but even then, the extra amount they tack on to the monthly cost means you only end up saving a few quid. :/

Wouldn't make a difference really. If the 16 quid for a landline disappeared your next "consolidated bill" would magically be approximately 16 quid more.

I don't know about other locations, but in the US a dry-loops DSL costs about as much on paper as getting a basic phone line with it. Were you save a lot of money is not having to pay all the silly FCC fees that go with having a phone line. Those fees can be about $10 a month extra.

Sandor said,
Wouldn't make a difference really. If the 16 quid for a landline disappeared your next "consolidated bill" would magically be approximately 16 quid more.

Yeah, like I said, it's minimal. Just looked at Virgin Media's prices; their fastest package (152Mb) is £28 a month + £15.99 a month line rental on an 18-month contract or £39 a month on its own on a 12-month contract, so you save a fiver a month and you're tied down six months less, which isn't as bad as I was expecting. On a sidenote, if you paid for their line rental saver, the monthly equivalent for line rental drops down to £12 a month, so then the difference with and without the landline drops to just a pound a month for the first year; then you have to decide whether to stick out the remaining six months on the regular monthly rate or commit to another 12 months in advance. It's a dirty tactic both VM and BT use.