BT Group’s (LON:BT.A) customers will be hit with higher bills next year, The Telegraph has revealed. Prices are scheduled to rise from January 7, marking the telco’s third increase in 18 months.
BT’s share price has been little changed in today’s session, having inched 0.08 percent lower to 248.80p, marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.29 percent lower at 7,462.50 points. The group’s shares have lost more than 31 percent of their value over the past year, and are down by some 32 percent in the year-to-date.
The Telegraph reported today that BT’s customers were set to be hit with higher bills, of up to £36 a year. Prices will rise from January 7 and will affect those with BT landlines, broadband and BT Sport.
The newspaper quoted the FTSE 100 group as saying that it needs to review its prices from ‘time to time’. The telco meanwhile is freezing line rental for broadband customers at £18.99 a month and there will be no changes to the cost of TV packages or BT Mobile. The telco further said that once the price changes are introduced, it will offer existing customers the option of upgrading for the same price. The cost will be frozen for 18 months.
The news follows BT’s second-quarter results last week when the company unveiled a drop in revenue and profits as it continues to deal with a string of challenges.
Analysts on BT
Goldman Sachs, which is ‘neutral’ on BT, set a price target of 330p on the stock yesterday, while Barclays, which sees the telco as a ‘buy,’ set a valuation of 420p on the shares. According to MarketBeat, the former telecoms monopoly currently has a consensus ‘hold’ rating and an average price target of 333.33p.