The average total first year cost of the 10 cheapest standalone broadband packages from January 2007 through to January 2011 were compared. Whilst headline broadband speeds have increased by 29% since 2010 the cost has also risen by 11%, twice the rate of inflation:
Date ------ FYC ----- Mntly Cst --- % Change --- Speed (Mb)--- % Change
Jan-11 ... £126.49 ... £10.54 ..... -11%...... 18.00........ 29%
Jan-10 ... £114.18 ... £9.51 ...... -14%...... 14.00........ 35%
Jan-09 ... £132.65 ... £11.05...... -11%...... 10.40........ 84%
Jan-08 ... £148.95 ... £12.41...... -14%...... 5.65........ -7%
Jan-07 ... £172.66 ... £14.39...... n/a ...... 6.10........ n/a
See editor's notes:
Michael Phillips, product director, commented:
"It is disappointing to see the cost of stand-alone broadband increase after so many years of broadband providers delivering price cuts to consumers. The VAT rise and effects of inflation are taking their toll, but providers are clearly placing a premium on broadband-only deals in their drive to sign up more customers to their bundled packages.
"Bundles for broadband, home phone, digital TV and mobile phone services do offer excellent value to consumers but those customers who simply want a broadband only deal should not be penalised. Broadband has become an essential utility to the majority of households across the UK and if prices continue to rise we may see a worrying downward trend in broadband subscription across the country – denying access to essential information, communication and financial services that many consumers now rely upon to conduct their lives."
Broadbandchoices.co.uk's top tips for keeping costs down:
1. Compare deals in your area: package availability and costs vary by postcode so use an Ofcom accredited comparison calculator to check out the best deals and see how your current package compares against the latest ones.
2. Think literally: realistically evaluate your needs as a broadband user. Have they changed since you first started using the internet? If you spend a lot of time downloading you will need a package that can support this activity. Conversely, if all you do is email and surf you'll probably only need a basic package.
3. Sign up online: many broadband providers offer discounts if you subscribe online through a price comparison site rather than over the phone.
4. Haggle: make no mistake, broadband providers want to keep you as a customer. If your contract term has ended, use this freedom to bargain for a better price/service. Your provider may make concessions to get you to sign up to another contract.
