Broadband Buyers Guide
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Whether you're ordering broadband for the first time or considering switching provider, our helpful buyers guide below details the main factors you need to consider when comparing broadband packages. These are cost per month, first year cost, speed, download limit, package combinations (bundled extras like free phone calls and TV channels) and contract length.
To kick off we thought it would be useful to provide some background on broadband penetration rates in the UK and what we think will happen during 2010.
Broadband Penetration In The UK
With broadband now available to 99% of the UK population, it's not surprising to hear that the UK is Europe's most developed broadband market with 63% of UK households having high speed internet access by the end of 2009 - that's up from 56% in 2008 according to the Office for National Statistics (ONS).What Will Happen During 2010?
Broadband subscriber numbers are expected to continue during 2010 with up to 1 million customers signing up to broadband for the first time, not to mention the 600,000 consumers switching provider each month.Several factors are driving this growth, one being the technology developments that are enabling those people living in rural areas to have access. The other is the increasing competition between the UK's broadband suppliers that has pushed prices down to the same level as dial up, thus tempting the remaining dial up users to upgrade and take attractive bundled package combination offerings as well.
It's not just players like TalkTalk (with its acquisition of AOL and more recently Tiscali) leading the charge for market share in the broadband market. Mobile phone companies like Orange and O2, plus leading pay TV firm Sky, will continue to market aggressively their low priced bundles containing the like of broadband, home phone calls, TV and mobile. This competition will intensify as the market leaders BT and Virgin Media defend their positions with BT heavily marketing its 40Mbps BT Infinity broadband service and Virgin Media its 50Mbps fibre optic cable broadband service.
So as the country gradually comes of the economic downturn, it promises to be a year of continued lower priced broadband packages and great value bundled offerings including devices like free laptops, netbooks and the new Apple iPad. Mobile broadband, either on its own or with a free laptop will also continue its impressive subscriber number growth and offer a real flexible alternative to fixed line home broadband. With this in mind, its well worth keeping visiting this site to review & compare the latest package prices and bundles on offer. Now back to the buyers guide....
The Factors To Consider When Comparing And Buying Broadband
We've detailed below the main things you need to consider when comparing and buying broadband. These are cost per month, first year cost, speed, download limit, package combinations (bundled extras like free phone calls and TV channels) and contract length.Its important for you to read this information so you can establish in your own mind what your main purchase criteria is - for example, is it more important for you to sign up with an ISP that offers a no minimum contract tie in as opposed to a provider which offers the lowest cost per month but with an 18 month contract?
1. Cost Per Month And Any One Off Fees
There will be a fixed monthly fee, plus in some instances, a one off fee for a modem, wireless router, or installation. Most suppliers offer a free modem or wireless router and recover the cost in the monthly fee you pay. Cable companies like Virgin Media may charge an installation fee as an engineer will be required to visit your home to conduct the installation.Your fixed monthly fee may increase if you choose a package with a monthly download usage limit and you go over that limit during the month. If so, you'll be charged for the additional kilobytes that you have downloaded. Please see 3. below for more information.
2. First Year Costs
As some ISP's offer incentives such as first month free or a reduced price for the first 3 or 6 months, its worth considering what the total cost will be for your first year if cost is your number one purchase criteria.3. Broadband Speed - Up to 'xMb'
The term 'up to xMb' where 'x' is a number, refers to the maximum download speed of the broadband package on offer. Upload speeds are generally not quoted as they are deemed less important with most people downloading from the internet as opposed to uploading. If your telephone line won't support up to, say, 8Mb, your chosen ISP will offer you the best available speed that your line will support.Up to 8Mb broadband is now standard in the marketplace, so if you'll just be using broadband for surfing, email & downloading some music and videos, its likely this will be all you'll need. If you're looking for faster speeds and optimum performance, some suppliers like Be and Virgin Media can offer speeds from 24Mb to 50Mb in some areas.
Its worth noting that as ISP's upgrade their package speeds, its also likely that they'll upgrade your broadband speed aswell - without it costing you any more money.
4. Monthly Download Usage Limits
Some broadband providers offer unlimited monthly download usage whilst others impose a download usage cap or limit. If you don't do too much, its not really something to consider. However, if you're a heavy downloader of large music and video files, its worth considering the monthly usage limits that apply as you may be charged per kilobyte if you go over the limit. In that case, you're best going for an unlimited monthly download usage package so you know exactly what you're going to be paying each month.5. Package Combinations (Bundles / extras)
Bundles are an increasingly common feature with broadband packages. Many of the providers like Orange and Talk Talk are now offering a single price per month for Broadband and anytime UK landline phone calls. Some like Sky are offering a TV package bundled in as well - all at an an attractive cost per month and all on one bill.You'll need to look at the costs you pay to different providers for services like your phone line rental, phone calls, broadband, pay TV and mobile and compare the total cost with these new bundled offerings. In most cases there will be savings to be made but its worth keeping an eye on the small print.
6. Contract Length
Most ISP's like to tie you into a 12 or 18 month contract to help offset the costs of offering you incentives such as a free wireless router or a reduced cost per month for an initial period. Naturally, they also use this time to try to up sell and cross sell you their other services.12 or 18 month contract periods are fine for most people, though its worth reading their terms and conditions to find out what their termination penalty is should you wish to cancel before the end of the contractual term.
If you're after some flexibility, there are some providers like AOL that offer a no minimum term contract tie in when you switch to them and bring with you your own modem or wireless router.
What Do I Do Next?
Hopefully you'll now have an idea of what your most important purchase criteria is (e.g. speed, cost per month etc). The next step is to visit our broadband comparison page where you'll be able to search for and find a comprehensive list of the UK's broadband provider packages available in your postcode area. Here, you'll be able to compare speeds, download limits, package combinations (bundled extras like free phone calls and TV channels), contract lengths, costs per month and first year costs for all their packages and bundles.If you're unsure as to some of the terms used on this page, please read our beginner's guide to broadband or our guide to switching supplier.
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