TalkTalk is increasing the cost of line rental to 9.5% to £13.80 from October, but says its prices are still lower than rival BT’s.
BT last week launched a direct marketing campaign to reassure customers after raising prices 5%. It’s line rental is now £14.60.
BT has, however, pledged to freeze prices until 2013 and is hoping consumers will take up its special tariffs and deals to mitigate the price increase.
Sky is also running an advertising campaign to promote its price freeze for its broadband and phone services.
Earlier this year The Advertising Standards Authority banned a TalkTalk advertising campaign for making misleading claims over potential savings its customers could make compared to BT.
TalkTalk is currently sponsoring the new series of The X-Factor which attracted 12.5 million viewers on Saturday (3 September).