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Which is Really the Cheapest UK Phone and Unlimited Broadband ISP

Wednesday, April 8th, 2015 (2:00 am) - Score 9,749
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Consumers are extremely sensitive to price and many base their choice of ISP on what they save in comparison to an existing package. But often the headline special offers won’t give you the full picture and as a result you could end up paying more than expected. We take a closer look at the price you pay for the “cheapest” packages.

Unfortunately one of the problems with examining and comparing deals from several ISPs is the enormous variation between package specifications, coverage, usage allowances and value-added features. As a result we’ve opted to centralise our comparison around those services that are available to most of the United Kingdom and which also offer an unlimited usage allowance. The cost of line rental and calls, where required, will also be factored.

In consideration of the above we have selected four standard broadband (sub-24Mbps) and four superfast broadband (24Mbps+) packages from different ISPs for our comparison, which excluding first year discounts should be among the markets cheapest. In addition, we will also examine the impact of current discounts on service price.

But before all that we want to touch on two very important aspects of service cost and delivery, specifically special offers and phone line rental.

Special Offers – Swings and Roundabouts

Spend even a small period of your time observing this market and you’ll quickly notice that the big ISPs have all developed a musical chairs approach to special offers. In fact not a single week seems to go buy when one package or another doesn’t exhibit some form of half-price discount, bonus shopping voucher or other twist in order to entice consumers and keep their offers in the public spotlight.

The trick here is that most of these discounts rotate in such a way that the underlying value proposition of a package doesn’t change too aggressively from month to month. For example, during one week an ISP might offer a free connection (example saving of £50), but the next week that connection fee might change to £25 (instead of the normal £50) and then they’ll add a shopping voucher worth £25.

Another popular example is the way in which an ISP might in one week make a big show of offering “6 months free service” and then the following month they’ll claim to go one better by offering “12 months of half-price service” for the same package. Put another way, most reductions are merely variations on the same rough level of discount.

Admittedly it’s not always like this and sometimes, often seasonally, you’ll see bigger discounts than usual and this is frequently driven by competition between rivals. For example Sky Broadband, in an effort to combat BT’s offer of free BTSport TV content with discounted broadband, has recently taken to offering major reductions (e.g. one or two years’ worth of free unlimited broadband) with certain bundles and packages.

Clearly it’s an aggressively competitive market out there, but also one where the true (normal) cost of a package is often lost in a sea of almost endlessly rotating discounts.

A Question of Line Rental

Of course it’s virtually impossible to talk about the price of broadband without also having to cost that age old bugbear of line rental, which is usually but not always a separate cost to that of your broadband service. It’s all very well an ISP claiming to offer 6 or 12 months “free broadband“, but a lot of what the provider may lose from such promotions can be reclaimed by keeping the price of phone line rental high.

A quick glance at some of the biggest ISPs today reveals that monthly line rental, at least on ISPs that make use of BTOpenreach’s national network, tends to stay about the same no matter who you pick. In fact it’s the one area that, year after year and without fail, consistently seems to rise in price above the level of inflation.

Example Line Rental Prices (Per Month – Data from Feb 2015)

BT – Standard Rental: £16.99 | Pre-Paid Rental (Monthly Equivalent): £14.15

Sky Broadband – Standard Rental: £16.40 | Pre-Paid Rental: None

TalkTalk – Standard Rental: £16.70 | Pre-Paid Rental: £15.03

The above ISPs typically operate off BT’s national UK telecoms platform and in most cases the base cost of wholesale line rental actually comes out at around £10 per month, which funnily enough has held fairly steady over the years while ISP charges have increased. Naturally ISPs need to add a profit margin on top and there are also variations in what services get included, but clearly there’s more to line rental than first meets the eye.

For example, TalkTalk’s line rental gives you free calls to other TalkTalk customers, but otherwise their phone charges are all pay-as-you-go style standard rates. By comparison BT and Sky both give you free UK weekend calls for the same price and standard rates at all other times. So TalkTalk’s broadband might normally be the cheapest of the three, but they make savings elsewhere and thus which ISP choice is going to save you the most money might also depend upon how you use the services they provide (i.e. free calls are more valuable to some than others).

The above is also one of the reasons why you can usually only get the best headline discounts by purchasing a broadband and phone service together (bundle) from the same ISP, which thus makes it easier for the provider to control their costs, platform and continuity of service.

Elsewhere some providers, such as cable and pure fibre optic (FTTH/P) ISPs, will claim to offer a truly standalone broadband service without the need for a phone line. But take this with a pinch of salt because you’ll still have a physical line entering your home and the subscription fee needs to reflect the cost of maintaining that, which more often than not means paying more than you think.

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Mark Jackson
By Mark Jackson
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he is also the founder of ISPreview since 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on Twitter, , Facebook and Linkedin.
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12 Responses
  1. adslmax

    none are cheap because its rip off Britain (shambles)

    • DTMark

      What is your definition of “cheap”?

      VM – 50Mbps unlimited package, £28.50/month

      I’d say it’s being practically given away for nothing.

      How much do you think that ought to be?

    • Britain has some of the cheapest home broadband packages in the world, so I’d say it’s one area where we’re not being ripped off.

    • Astroturfer

      Feel free to emigrate to somewhere the Internet access fits more closely with your view of how it should be priced.

    • FibreFred

      Maybe move to another country, you are clearly not happy with Britain

  2. Kits

    When they do packages they are not always cheaper unless you make lots of calls. I moved phone to Aquiss £13 a month line rental, used to pay for free evening and weekend calls at the time £9 a month. Never realised how few calls were done over the landline until the move to Aquiss paying for each call the highest bill we had was for just under £4 some months less than a £1.

    It does all depend on what you need for your service but I would never sign up for a package to give free calls anytime again.

  3. Peter Glover

    You are lucky to have a choice, if you live in Hull you are stuck with Kingston Communications and slows adsl 2 speeds
    unless you are one of the lucky ones who can get the lightstream options BUT a lot cannot

    • Bill Lewis

      Peter, you have a point there. Kingston do seem a lot more monopolistic even than BT .

      I remember once looking at fitting a Fixed wireless system in Hull area, only to receive an unpleasant threatening phone call shortly after advising us to “keep out”.

      nice..

      Bill

  4. Allan Sanders

    UK Internet and telephony needs a good shake up. In France the norm is €29.99 (£21.42)per month for unlimited ADSL service Nominal 25mb/s and unlimited land line calls to more than 200 destinations. Fibre is being systematically installed and will cost no more than copper. For this reason not looking forward to returning to rip off Britain. Perhaps I could persuade my current ISP to operate in the UK!!

  5. Bill Lewis

    There are cheaper solutions but it involves using service providers that do not rely on BT infrastructure or phone lines.

    Voip Line rental varies from free to ~£2 or so (if you keep your number) via the good providers per month. no min call charges/connection charges and all voip to voip calls free are some of the usual benefits.

    that leaves a lot of spare for the broadband fee.

    I wonder why .Gov doesn’t promote these services? ah yes.. BT

    Bill

  6. Graham Durbin

    No one seems to mention the fact that SSE seem to have the cheapest Broadband Deals for ADSL & Fibre. ADSL Broadband Phone line £12 / mth Broadband free.. Fibre Phone line £12 / mth Broadband upto 38Mb £10 / mth uoto 76Mb extra £2 / mth. Contract for 2 yrs.. However the Offers will be closing in mid September 2015

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