BT is overhauling its policy on mid-contract price hikes ahead of strict new regulations being imposed by the UK's communications regulator Ofcom. The company said it will stop linking price rises to inflation and instead specify clearly in monetary terms what increases customers can expect. 

The move comes after Ofcom found last year that the way telecoms companies raise prices lacks transparency and can be confusing for consumers. Under BT's current model, tariffs are adjusted...