BT’s latest price increase comes into effect on Sunday, meaning many of the company’s long-standing customers will soon be paying in excess of £600 a year for their home phone, calls and broadband package – a bill they could cut by £350 a year by swapping to BT subsidiary Plusnet. Unusually BT has chosen not to put up its landline charge this January, which means it is staying at £18.99 a month. Instead it is the company’s broadband and BT Sport customers who will be feeling the pinch this time round. This weekend’s hike is the fourth price increase imposed by the company in three years, and leaves it looking very expensive compared to rival offers. The telecoms market is now similar to the energy market in that those who do nothing pay the most. In terms of the hikes, BT customers on its basic broadband will now pay £2 a month more. That might not sound like a lot, but it equates to a 10% increase on top of what was already one of the highest broadband charges at £20 a month. Those on the faster Infinity packages will be paying an extra £2.50 a month. Customers who pay for the “anytime” unlimited calls deal will see that go up from £8.99 to £9.50 a month. Back in 2011 this cost £4.90 a month. The 1571 answerphone service, which is free at some rival operators, rises 50p to £3 a month, or £36 a year. Those who pay for each call they make will see the cost of making a call rise to a minimum of 35p from Sunday. BT Sport customers – who admittedly are getting a lot of sport for their money – will see their monthly bill rise to £10 a month (up £2.50) if they don’t watch it via BT TV. Those without BT broadband and who watch via Sky/TalkTalk will see the bill go up from £22.99 to £25.99 a month – or £312 a year. The company has frozen prices for low-income customers - those on its special BT Basic package. “We are investing more than ever in broadband, including boosting the speed, data and cloud storage of millions of customers,” insists a BT spokesman, adding: “There are also great personalised offers for our broadband customers. “They can stay on the same broadband deal for the same price as they were paying before this change, if they sign a new contract. Or they can choose to upgrade to a better product, usually offering more speed or more data, for their new price, which will be frozen for 18 months.” So what are people’s options? BT wrote to customers announcing the price hike in November and giving customers 30 days to quit penalty-free – even if they were in-contract. That date has expired, but millions of the company’s customers are free to switch supplier without penalty. Until Tuesday 9 January, Plusnet, which is owned by BT, is offering home phone and basic broadband for £19.99 a month, including landline – with £50 cashback. MoneySavingExpert.com calculates that this is the UK’s cheapest deal, as those buying their landline upfront for the 12-month contract duration at £210 can save £350 a year compared with what BT is charging. Elsewhere, Sky was this week offering a basic broadband/landline package service for £18.99 a month. There’s also a £50 pre-paid MasterCard thrown in, too, but a £19.95 set-up fee. TalkTalk has the same basic deal for £19.95 a month – the contract lasts two years but comes with the promise that prices won’t rise during the term. Other contract terms are available. If you want faster downloads, Plusnet also has a one-year fibre deal priced at £25 a month – just remember to switch or re-sign at the end of the first year. TalkTalk’s fibre deal is also £25 a month, but for two years. Another company to look at is the energy firm SSE, particularly if you are an existing energy customer. It is offering basic unlimited phone/broadband for £21 a month (or £26 a month for non-energy customers). The better-value fibre deal is £24 or £29 a month. Its anytime calls package costs £7 a month compared to BT’s £9.50. In both cases, prices are fixed for three years, but customers are on a rolling monthly contract, meaning you can leave at any time. As ever, prices are changing all the time, meaning you have to look at the companies’ websites for the latest deals. If you watch catch-up or streamed TV services, or download big files, it is worth the extra few pounds that fibre now costs. • All prices correct at time of writing
UK telecoms company BT's fourth price rise in three years could see it's most loyal customers paying more than £600 ($811) annually for their TV, telephone and internet bundles. Among the increases are the BT Sports package, which hits viewers via Sky and TalkTalk the hardest, as their bill rises from £22.99 to £25.99 per month. Ironically, BT also offers the UK's cheapest deal, with its Plusnet's package at £19.99 per month, according to MoneySavingExpert.com.