Quote from Alex bobby on January 18, 2024, 12:08 PM

BT, a prominent Internet Service Provider (ISP), has unveiled plans to revamp its approach to price hikes, aiming to enhance transparency and fairness for its extensive user base. The current method, pegged against the Consumer Price Index rate (CPI) plus an additional 3.9 percent, has resulted in a surge in bills exceeding 13 percent amid record-high inflation levels. In response to the growing concern over unpredictable inflation-linked price rises, BT's CEO, Marc Allera, disclosed the company's intention to adopt a new pricing model aligning with Ofcom's methodology.

Allera emphasized the shift away from percentage figures and CPI, opting for a more straightforward representation of changes in "pounds and pence." The proposed adjustments will be implemented for new and re-contracting mobile customers, reflecting an increase of £1.50 for services such as Sim Only and Airtime. Broadband customers, on the other hand, can anticipate a £3 increment. This transition is welcomed as a positive step towards clarity and simplicity in communicating billing adjustments.

Despite the positive changes on the horizon, the catch lies in the timing of their implementation. The revamped pricing model is slated to take effect in the summer, leaving millions of households vulnerable to the current CPI rate of 3.9 percent plus BT's additional 3.9 percent until then. Consequently, this delay may result in bills soaring by over 7 percent in the interim, drawing criticism from industry experts.

Rocio Concha, the Director of Policy and Advocacy at Which?, expressed dissatisfaction with the timing of the changes and questioned BT's motivations. While acknowledging the positive shift away from unpredictable inflation-linked hikes, Concha criticized BT's attempt to claim credit for changes that might have been prompted by regulatory pressure from Ofcom. She labeled the decision to proceed with an inflation-busting price increase in April as "shameless" and highlighted the potential harm it could cause to broadband and mobile users.

Concha asserted that BT's use of the pricing model announcement as a shield for implementing another inflation-busting price hike demonstrated a lack of commitment to consumer welfare. She urged BT and other providers to reconsider their plans for such cash grabs, especially in light of regulatory concerns about the harm caused by above-inflation price hikes.

In conclusion, while BT's move towards a more transparent pricing model is a positive development, the delayed implementation and concurrent inflation-busting price increases have drawn criticism from industry experts. The call for canceling the planned price hikes and ensuring consumer protection against unpredictable increases remains a key point of contention in the ongoing debate over fair and transparent billing practices in the telecommunications industry.