Are Broadband Prices Going Up in April 2025?
April 2025 is bringing another wave of broadband price increases, affecting millions of UK businesses. Major providers such as BT and Virgin are raising their rates by 6.4% and 7.5%, respectively. Additionally, Openreach are implementing industry-wide price increases for its suppliers, with a strong focus on significant cost hikes for all legacy services. These increased charges are inevitably being passed on to customers, resulting in higher broadband bills for businesses across the UK.
However, the good news is that you don’t have to accept these hikes without exploring your broadband options. At RPS, we’re here to help you understand what’s changing, what it means for your business, and how we can help you take action now, to avoid paying more than necessary.
Why Do Broadband Prices Increase?
Broadband price rises are an annual occurrence, but what causes them? There are several key reasons behind these increases:
1. Inflation & Regulatory Changes
Many broadband providers link their price increases to inflation, specifically using the Consumer Price Index (CPI) or the Retail Price Index (RPI). CPI inflation in the UK has remained high in recent years, with the Office for National Statistics (ONS) reporting a rate of 6.4% for 2024. Because many providers add a set percentage (such as 3.9%) on top of inflation, customers face significant annual increases.
Additionally, regulatory changes can impact broadband pricing. Ofcom, the UK’s communications regulator, has introduced various initiatives, such as the copper switch-off and full-fibre rollout, which are designed to modernise the UK’s broadband infrastructure. While these changes aim to improve connectivity in the long term, they often lead to increased costs in the short term as providers adjust pricing structures to reflect new regulatory requirements.
2. Openreach Pricing Strategy
Openreach, which operates the UK’s broadband infrastructure, is actively pushing businesses away from outdated telephone and broadband solutions by increasing the costs for legacy services. This strategy is intended to accelerate the adoption of full-fibre broadband but results in higher prices for businesses still relying on older technologies. Suppliers must either absorb these higher costs or pass them on to customers.
3. Rising Operational Costs
The expansion of full-fibre networks and continued investment in infrastructure improvements require significant capital expenditure. Telecom companies are investing billions into upgrading their networks, and much of this cost is being recouped through higher customer bills. According to Openreach, their full-fibre rollout is expected to reach 25 million premises by 2026, requiring extensive investment in new infrastructure.
How Much Could Your Broadband Bill Increase?
The exact increase depends on your provider and contract, but many businesses can expect hikes of between 6-8%. However, those still using legacy services will face even steeper increases due to Openreach’s pricing strategy.
Legacy services most affected include:
- ADSL Broadband
- FTTC (Fibre to the Cabinet)
- GFast
- Analogue Line Rental
- ISDN Line Rental
If your business relies on any of these services, now is the time to check your bills and contract terms to understand the impact of these price rises on your costs.
How to Reduce Your Broadband Costs
With rising costs across the board, businesses must be proactive in finding ways to save on broadband while maintaining performance and reliability. Here are some key strategies to help you mitigate the impact of price hikes:
1. Upgrade from Legacy Services
If your business is still using ADSL, FTTC, or ISDN services, you are likely overpaying for outdated technology. The UK’s copper network is being phased out by 2027, and Openreach’s price hikes on legacy services will only continue. Moving to full-fibre broadband (FTTP) or other modern alternatives can provide:
- Faster speeds
- Greater reliability
- Often lower costs compared to legacy services
According to Ofcom, businesses that have switched to full-fibre broadband experience fewer service disruptions and higher efficiency in day-to-day operations. Now is the best time to explore alternative solutions before further price increases take effect.
2. Compare Providers
Not all broadband providers offer the same pricing or level of service. While it may be tempting to stay with your current supplier, you could be overpaying for the same level of service available at a lower cost elsewhere.
When comparing providers, consider:
- Contract terms: Ensure there are no hidden charges or lengthy commitments.
- Customer support: A cheaper provider may offer poor service, leading to costly downtime.
- Speed and reliability: Check the service level guarantees and uptime commitments.
3. Consider the True Cost of Downtime
While choosing a lower-cost broadband provider may seem like an easy way to save money, poor service reliability can be far more expensive in the long run. Slow speeds, frequent outages, or inadequate customer support can significantly impact your operations.
Investing in a broadband package that includes robust service level agreements (SLAs) and dedicated support can prevent costly disruptions and improve business continuity.
4. Choose a Provider That Aligns with Your Business Needs
Not all broadband providers offer the same level of security, scalability, or customer support. Consider working with a provider that understands the specific needs of your business and can offer a tailored solution.
For example, if your business handles sensitive data, opting for a broadband service with built-in cybersecurity protections and dedicated support may be more beneficial in the long run.
5. Act Now to Lock in Current Pricing
With broadband costs continuing to rise, securing a competitive rate now could save your business hundreds or even thousands of pounds over the coming years. Many providers offer fixed-term contracts that lock in your current pricing, protecting you from upcoming inflation-based increases.
Final Thoughts: What Should You Do Next?
To ensure your business is prepared for the April 2025 broadband price increases, take these proactive steps:
✅ Check your bill today – If it’s confusing, send it to us, and we’ll analyse it for you.
✅ Book a free consultation – We’ll assess your broadband needs and identify cost-saving opportunities.
✅ Lock in better pricing now – Don’t wait for the price increases to take effect—secure a more competitive rate today.
By taking action now, your business can stay ahead of rising broadband costs, avoid unnecessary expenses, and ensure reliable connectivity for the future.
