In a blog post published earlier today, Marc Allera, CEO of BT consumer confirmed that the telco giant would be ditching the method.
This comes as BT anticipates a likely ban on inflation-linked pricing after Ofcom opened a consultation into the controversial practice late last year, Mann says.
He added: “It gives the operator a short window to promote a clearer and more transparent approach compared to its rivals before most other operators inevitably follow suit.”
BT’s announcement comes less than 24 hours before many UK operators confirm their annual price increases for 2024.
Mann says this is a delicate topic as households continue to grapple with cost-of-living concerns. Thus, operators need to tread carefully.
In CCS Insight’s consumer research last month, nearly three-quarters of people said they would consider acting if their mobile or broadband bill went up again this year.
“The ball is now in the court of the UK’s other operators, some of which will probably quickly follow BT’s lead.
“But for would-be partners Vodafone and Three, it’ll mean some crucial decisions given that their pricing strategy will be scrutinised by the competition watchdog as part of a major upcoming investigation into their planned merger.”
Ofcom is due to publish its final decision on the matter this spring and BT said it would take the regualtor's proposals "on board".
