Are you tired of those confusing broadband, TV and mobile price increases every year? This week, BT Group unveiled its new pricing strategy, which aims to provide customers with more clarity and certainty about their future telecom bills.
Starting in March 2025, BT, EE, and Plusnet customers will continue to see annual price increases on their mobile, broadband, and TV services – but instead of obscure inflation-linked increases, they’ll know exactly how much they’ll be paying.
Under the new pricing model, customers will be informed of the precise amount of the annual increase in pounds and pence at the start of their contract.
For example, EE mobile customers will see a £1.50 monthly increase, while EE TV customers will face a £2 monthly increase (see full details below).
This change comes as a response to Ofcom’s push for greater transparency in telecom contracts, as the regulator has expressed concerns about the lack of clarity in current pricing practices.
Ofcom’s Push for Pricing Transparency
BT’s decision to overhaul its pricing structure is not happening in a vacuum. The UK’s communications regulator, Ofcom, has played a significant role in pushing for these changes.
In December 2023, Ofcom issued a statement expressing concerns about the clarity and predictability of price rises in telecom contracts.
The regulator observed that most major phone, broadband, and pay-TV companies were incorporating mid-contract price increases linked to uncertain future inflation rates.
We all know this – every year, around March / April, the companies announce price increases for subscribers who are under contract – and most have no choice but to accept those increases, at least until their contracts are up.
While legally compliant, this practice often left customers facing unexpected and sometimes steep price hikes, with little understanding of the underlying reasons.
As a result, Ofcom is planning to semi-ban these types of price increases. Prices will still increase annually, but customers will be told in advance the exact amount in pounds and pence, rather than in percentages.
While BT is one of the first major providers to announce changes in line with Ofcom’s proposal, other major providers are expected to follow suit.
EE TV: The Evolution of BT TV
Before diving into the specifics of BT and EE’s new price increase structure, it’s worth noting the recent rebranding of BT TV to EE TV.
In 2022, BT announced that EE, its subsidiary, would become the new consumer-facing brand for broadband and TV services, in addition to mobile.
EE TV then relaunched in December 2023, offering a revamped TV service that works over broadband.
The platform introduced an exclusive EE version of the Apple TV 4K box, allowing customers to access EE TV’s services, including live Freeview channels.
EE TV’s bundles are similar to the former BT TV packages, with prices currently ranging from £20/month for the TNT Sports package to £78/month for the comprehensive Full Works bundle.
Customers can flexibly switch between bundles during their contract, adapting their TV services to their changing needs and preferences.
BT And EE’s New Price Increase Model
Before the change, BT’s pricing model was adjusted annually each year on March 31, based on the Consumer Price Index (CPI) – a measure of inflation – plus an additional 3.9%.
Starting this week, BT and EE will implement a new price change model that aligns with Ofcom’s approach.
New contracts will clearly state the exact amount of the annual increase in pounds and pence, providing customers with a clear understanding of their future bills.
Plusnet, another BT-owned brand, will follow suit later this summer.
Therefore, from March 31st, 2025, annual increases will be as follows (for new and re-contracting customers):
- EE Mobile customers: £1.50 per month
- Data for connected devices (laptops, tablets, smartwatches): £1.50 per month
- EE TV customers: £2 per month
- BT / EE Broadband customers: £3 per month
- Out-of-bundle services: 5% annual increase
BT has emphasized that customers in financially vulnerable circumstances who are on EE Basics or BT Home Essentials packages will be exempt from any plan increases.
Under the new pricing model, BT and EE customers will have more clarity and transparency about the exact amount of their annual price increases.
However, it’s important to note that this new model won’t always guarantee lower increases compared to the previous inflation-linked approach.
In fact, when inflation rates are low, customers may experience higher price increases than they would have under the old system.
What Does This Mean For EE TV Subscribers?
Since we focus on TV and streaming, let’s examine what the new model means for EE TV’s new customers.
The £2 per month increase will apply only to the base TV package, while add-ons will maintain their current prices.
This means that even if you subscribe to multiple EE TV packages, such as Sports AND Entertainment, your total price will increase by just £2 per month each year from March 2025.
To illustrate, the TV Entertainment package, currently priced at £20 per month, would increase to £22 per month from March 2025 and then to £24 per month from March 2026.
If you have Entertainment (£20/month) and Sports (also £20/month), your total monthly price would be £40. From March 2025, your price will go up to £42/month (an extra £2/month in total), and then £44/month in 2026.
In his announcement today, BT Group’s Consumer division CEO Marc Allera acknowledged that annual price changes can be a sensitive topic for customers.
However, the company maintains that these adjustments are necessary to manage rising costs and investments in networks and customer service, while also protecting vulnerable customers and those experiencing financial hardship or digital exclusion.
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So BT (unsurprisingly) decide to slam dunk broadband customers with a near-damn 10% increase which is going to be much higher than CPI + 3.9%.
I’ll be looking to leave BT when my contract is up as BT I think I’m already overpaying them for what I get.
Can anyone explain to me where the “+3.9%” comes from that telecoms companies are charging on top of the inflation index number ? Why is it specifically 3.9% ? Is it a regulated (and permitted) increase ? And why (in an act of seeming cartel-like operation do they all insist on levying the 3.9% extra ? A healthy competitive market with a focus on customer pricing would surely lead to a few more choosing to forego that 3.9%. I’ve done some brief internet searches but can’t find anything about the origin of the 3.9% figure – is that number intended to be a regulated figure/amount that allows telecoms companies and others to maintain/expand their networks ? In which case, what costs do the inflation-indexed amount actually cover ?
I have BT broadband ‘at the moment’ and notice that the £3 a month proposed increase is more than a 10% increase on what I pay now. BT should take care. At this present moment, a private company is installing fast fibre in the town where I live. There prices look very competitive!
The probelem is internet companies know that we have to rely more & more on internet services so they can charge as much as they want.
I’m glad I left BT and EE after last years crazy price increases. No regrets and no going back..
Ouch!
I don’t have any TV package, and probably couldn’t justify it at those prices, never mind the increase.
As for Broadband, i’ve been with BT for many years as one person in the house works from home and, in speaking to others in our area, you get what you pay for, so i’ve been reluctant to switch.
Some are on FTTP and they are often (almost weekly) complaining of no connection.
However, i’m planning on tackling BT as i’m out of contract. The prices, and increases are just getting silly, imho.
I expect we’re all in for increases as more and more Internet data usage.