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The changes pre-emptively bring the companies in-line with Ofcom’s newly proposed regulations
British mobile network operator EE, along with its parent company and internet service provider BT, has announced that it has become the first major operator to simplify its pricing structure.
The new ‘pounds and pence’ structure will show customers the exact cost of mid-contract price increases, rather than relying on percentage increases and unclear inflation metrics like the consumer price index (CPI) or retail price index (RPI).
“From 31 March 2025, for new and re-contracting mobile customers, this annual increase will be an extra £1.50 a month,” read the announcement’s press release earlier this week.
“It will be £1.50 a month for connected devices (including laptops, tablets and smart watches), £2 a month for TV customers, and £3 a month for broadband customers. Out-of-bundle services will be subject to an annual 5% increase.”
Back in December, Ofcom announced their proposal to ban inflation-linked mid-contract price rises to give customers more transparency regarding their future bills.
The driving force behind the ban was customer confusion surrounding the pricing adjustment metrics used.
After conducting an in-depth market analysis in 2023, Ofcom found that four in ten (11 million) broadband customers and over half of mobile customers (36 million) were on contracts subject to inflation-linked price rises. But the understanding of these terms like CPI and RPI was found to be very low, with 55% of broadband customers and 58% of pay-monthly mobile customers not understanding what CPI and RPI measure.
“At a time when household finances are under serious strain, customers need prices to be crystal clear,” said Melanie Dawes, Ofcom’s CEO in the Ofcom’s consultation announcement.
It is expected that the UK’s other operators will shortly follow suit.
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