BT hikes phone and broadband prices by 6.49%

Consumer experts say hike, which is four times higher than rate of inflation, is 'football tax' to show matches on BT Sport

BT is to impose a price increase of over 6% on its home phone and broadband customers in a move that has already been dubbed a "football tax".

The company, which has 7.3 million home phone and broadband customers, said that from 1 December the cost of a BT landline – mandatory for phone and high-speed internet – will rise by £1 to £16.99. At the same time the cost of its broadband service will also rise above inflation by up to 6.49%.

The hike is nearly four times higher than the current rate of inflation, which was 1.6% last month under the consumer prices index measure. Announcing the price hike, BT chief executive John Petter said the company was "sensitive to the tough economic times". However, one expert asked whether the increase will appeal to customers who have no interest in sports following BT's expensive outlay on football rights since 2012 and might question whether they are being forced to subsidise BT's football coverage.

Dominic Baliszewski, telecoms expert at broadbandchoices.co.uk, said: "Some people may see this as a 'football tax', but BT Sport is still incredibly competitive, with a huge amount of content for no extra monthly cost. Sports fans will very happy, but if you're not one, then your best bet may be to switch."