Virgin Media is preparing to raise the subscription price for its broadband, TV and phone services by an average of 4 per cent – some 13 times higher than the current CPI (Inflation) rate. BT has already stated it will be raising broadband prices by CPI + 3.9% this year.
The telco said it plans to invest £1 billion (€1.1bn) in its network this year. Virgin Media did not raise prices as normal in 2020, citing pandemic-related difficulties for customers.
The most recent CPI rate – covering the month of November – was 0.3 per cent, the lowest since 2016.
Virgin Media is in the process of contacting all of its customers to inform them of the price rise. It said most would see their bill go up by between £2.50 and £4.50 a month.
The increases will come into effect on March 1st – but they will not affect vulnerable customers, such as those on a special packages for universal credit recipients.
A Virgin Media spokesperson said: “Through continued investment, improvement and innovation, we’re committed to providing great value and a top service for our customers.”
“Over the last year, our customers have used their connectivity more than ever before, with data use increasing at the fastest rate we’ve ever seen. We’re already investing more than £1 billion in our network each year and consistently give our customers more megabits for their money, but to help meet this demand we do sometimes need to review our prices.
“Changing prices is never an easy decision, which is why, unlike other providers, this is our first cable price change in 18 months. We are currently writing to cable customers to transparently communicate these changes and we will continue to work tirelessly to ensure we deliver for our customers and keep them connected at a time when it has never been more important.”
Meanwhile, BT changed its terms and conditions last year to say it would increase broadband prices by 3.9 per cent above the first CPI rate published every year, which this year is scheduled in just over two weeks. Sister companies Plusnet and EE have followed suit.
Ofcom rules allow anyone unhappy with a provider’s price increases to leave their contracts early without a penalty.