A move away from inflation-linked broadband pricing in the UK may actually accelerate ARPU growth

Many operators worldwide consider their peers in the UK to offer a best practice case study for implementing broadband price rises to outperform inflation. Such practices, which have since been replicated in other countries, resulted in operator ARPU growth, but were often confusing for consumers. This resulted in the telecoms regulator Ofcom announcing a ban on mid-contract price increases that were not articulated upfront in absolute (“pounds and pence”) terms in June 2024. This move aimed to protect consumers from unexpected price hikes and help them to estimate the financial impact of future price increases.

In this article, we discuss how major British operators have evolved their broadband pricing practices since the new regulation came into effect in January 2025. We also outline the potential benefits of these new approaches to increasing prices.