BT will increase prices for millions of customers and stop competing with ultra-cheap rivals
- Chief executive said it’s no longer focused on competing with ultra-cheap rivals
- Instead Gavin Patterson wants to extract more cash from its 18m customers
- This news is likely to mean more price rises for some BT products
- The latest price rise will apply from September 16th for some customers
BT is set to hike prices for millions to squeeze more cash out of long-suffering customers.
Chief executive Gavin Patterson said the telecom titan is no longer focused on competing with ultra-cheap rivals for new business. Instead, he wants to extract more cash from its 18m existing customers.
This is likely to mean price rises for some products. It will aggressively push faster internet speeds, and BT TV subscriptions.
Plan: BT will aggressively push faster internet speeds, and BT TV subscriptions
Patterson, who is leaving later this year after being ousted over poor share price performance, said: ‘It’s a tight market, so if you’re going to put your prices up, then customers will expect more value.’
BT has also unveiled profits of £816million for the three months to June 30, up 3 per cent on a year earlier. Overall revenues dipped 2 per cent to £5.7billion.
The latest price from BT was announced at the end of June and will apply from September 16th.
Prices will rise across line rental, broadband, TV, calls and for BT Sport. Customers have been contacted by the firm with details about how they can leave penalty-free if they want to.
This was the second price rise from BT in 2018 as the telecoms giant also hiked prices in January.
Rival firm Virgin was in hot water last week after customers lost 10 UKTV channels including Dave and Gold after a dispute between the two companies.
Virgin customers lost 10 UKTV channels including Dave and Gold last week
It was then reported that some ITV channels like ITV2 – home to Love Island – and ITV4 – home to Tour de France coverage – could also go.
Virgin said it was trying to resolve the dispute with UKTV and that it is dealing with customers on a case by case basis.
While with regards to the ITV issue a Virgin Media spokesperson said: ‘We continue to have constructive discussions with ITV. All ITV channels remain live on Virgin TV and we have no intention of removing them.’
Our article on what to do if you want to leave or get a better deal has full details on what to do if you’re affected.
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