Until recently my monthly bill was £26.99, part of which (the majority of which, probably) is to pay for the handset, and part of which is to pay for the service.
The annual RPI price increase, it seems to me, only makes sense to apply to the part of the monthly charge that relates to the ongoing service.
The handset had a particular value at the time my contract started, and that doesn’t change with inflation. It decreases over time if anything.
What is the rationale behind applying the 7.8% increase to the entire £26.99 fee?
Thanks