BT hits customers with 6.5% price hike
BT will hike its price for home phone and broadband by up to 6.5%, more than double inflation, from January 2014.
Broadband customers will see an up to 6.5% increase on their bills, while customers on the unlimited anytime calls package will a 6.5% increase, from £5.15 to £5.48.
The new charges will see line rental rising 3.5%, from £15.45 to £15.99 per month, and the set-up fee for landline calls increase by 6.5% from 13.87p to 14.76p per call.
The price per minute of calls to UK landlines and 0870 numbers will increase from 1.11p to 1.18p per minute in the evenings, and in the daytime prices will increase from 8.41p to 8.95p per minute.
BT's answer 1571 voicemail service, which answers calls when you're away from the phone or on another call, will increase to £1.75 a month.
BT says, it will be writing to affected customers next week.
A spokesperson for BT said: "We review and revise our prices every year given the market is extremely competitive.
"Whilst some prices may go up during the year, many go down or remain the same. Our customers have seen their calls bills fall by 14% on average in the last five years as a result of us slashing the price of inclusive calls plans."
This summer saw BT enter the sports TV market, by broadcasting premiership football and rugby matches, in an attempt to compete with Sky. BT customers were able to sign up to service for free, while non-BT customers had to pay at least £12 per month.
An increase in the general level of prices that persists over a period of time. The inflation rate is a measure of the average change over a period, usually 12 months. If inflation is up 4%, this means the price of products and services is 4% higher than a year earlier, requiring we spend and extra 4% to buy the same things we bought 12 months ago and that any savings and investments must generate 4% (after any taxes) to keep pace with inflation. Since 2003, the Bank of England has used the consumer prices index (CPI) as its official measure of inflation (see also retail prices index).