TalkTalk response to Ofcom announcement on mid-contract CPI-linked price rises

In response to Ofcom’s announcement on mid-contract inflation-linked price rises this morning, Tristia Harrison, TalkTalk Group CEO said:

“For 20 years TalkTalk has focused on delivering value for customers in the vibrantly competitive UK broadband market. If Ofcom is to push ahead with tying industry’s hands on CPI indexed price inflation, we urge them to urgently review similar CPI inflation for BT Openreach at a wholesale level. The link between the two is obvious; is essential for protecting both consumers and competition, and needs addressing.”

The introduction of CPI-linked price rises in 2021 was as a direct result of Ofcom’s own decision to raise wholesale prices by CPI.

Wholesale broadband prices are regulated by Ofcom and in 2021, Ofcom decided that these prices should rise by up to CPI annually. Therefore, the costs that TalkTalk and some other providers pay have increased annually by CPI.

TalkTalk is urging Ofcom to reconsider this approach when it announces the new Wholesale Fixed Telecom Market Review in 2026, lasting for another five year period.