Phone bills could be four times higher than inflation levels in this key market

It's not just consumer electronics like phones and computers that are expected to get slammed with price hikes in 2026 – phone bills could also get more expensive. T-Mobile has already introduced a rate adjustment in January, but wireless service subscribers in the UK might have it worse.

What the data shows

Currently, inflation in the UK is around ~3.2%, but telcos might increase rates by more than 13% for phone and internet users. That's what a recent USwitch (a comparison and switching service tool) report claims, cited by Telecoms.

The UK's regulator for the communications services mandates that carriers and providers must disclose rises when customers sign contracts. Uswitch says that this has improved clarity, but many of the increases are now much larger in proportion.

Uswitch says the biggest price rises are on mobile phone bills, where people now pay about £18.60 (~$25 when directly converted) per month on average, and from April many could see their bills go up by £2.50 (~$3.40).

For broadband, Uswitch says some of the UKs biggest providers are adding a fixed £4 (~$5.40) per month increase for new customers, and when this is added to the current average broadband bill of £35.90 (~$49), it means an 11.1% rise, which is more than three times the current inflation rate.

Uswitch also says customers report they would only accept a £2.70 increase on broadband bills before thinking about switching, while 19% of mobile customers would struggle with a £2.50 monthly rise and 17% say they would not accept any increase at all.

T-Mobile's push

Back in the US, T-Mobile announced a new plan, called Better Value – the company is marketing it as a premium bundle that includes unlimited high-speed data, large hotspot limits, roaming, satellite access, and streaming services. It costs $140 a month for three lines with AutoPay, which is much cheaper than similar top-tier plans from Verizon and AT&T. Still, the plan has some limitations.

At the same time, T-Mobile announced a rate adjustment, as I mentioned above. The Magenta carrier raised its Regulatory Programs & Telco Recovery Fee (again).

Some customers will get a surcharge on their bills, which will go up by $0.50 (per line) starting January 21.

The increase only affects people on plans where taxes and fees are not included, while older all-inclusive plans will stay the same. The fee is not required by the government and is used by T-Mobile to cover regulatory and network costs, with voice lines rising from $3.99 to $4.49 and mobile internet lines from $1.60 to $2.10.