British Telecom (BT) is set to raise prices on some of its phone and broadband products by up to 5.9 per cent next year.
Prices on its line rental, call packages, calls to other landlines and its standard broadband prices are all due to rise following price rises by competitors such as Sky Virgin and Talk Talk. The prices increases will apply from January 5th 2013.
The price increases will not apply to calls to mobiles from landlines.
BT’s existing customers will be sent notification of the price increases in the next few weeks. At the same time BT will publicise details of bundled packages that could reduce the overall cost of services received to new and existing customers.
John Petter, of BT said: "We will be changing some prices in January, but we will then be freezing many key prices until 2014."
BT last set of financial results showed profits were up by eight per cent to £578 million in the second quarter of the year compared to 12 months ago despite a £4.5 billion fall in revenue.
BT also reported an 85,000 increase in the number of broadband customers during the quarter.