BT to hike broadband prices by more than triple CPI inflation

BT Group is to hike its broadband prices by more than triple the amount of inflation. It would also charge more for calls and some TV packages.

Customers on standard copper broadband would be hit with an additional £2 from 2 April 2, BT said in a statement.

Those on its quicker Infinity product would face coughing up an additional extra £2.50.

These broadband rises -- equating to an inflation-busting 5-6% -- were more than triple UK's consumer-price index (CPI) measure of inflation, which was up 1.6% in December.

Chief executive John Petter said customers would receive a better package and improved service in return for paying more.

"Millions will have the chance to upgrade to faster broadband and almost a million will be able to upgrade to enjoy unlimited usage for no extra cost," he said.

Several of the teleco's rivals -- Sky, Virgin and TalkTalk -- had either announced price hikes in the last year, or raised prices.

Analysts anticipated that other outfits -- notably Virgin Media -- might follow BT's lead, Reuters reported.

BT said it was freezing the price of a basic telephone line.

At 16:35 GMT, shares in BT were up 2.41% to 387.15p.