ORAC
18th Jan 2007, 07:53
Reuters: Broadband competition drives prices below dial-up
For the first time broadband monthly charges are below those of monthly dial-up packages, a situation brought about by intense competition between traditional ISPs and telecoms providers. The cost of broadband internet connectivity has fallen so sharply in the last year that is now cheaper on average than subscription dial-up access for the first time, figures show.
Dial-up subscribers are now almost certain to cut costs by adopting broadband, irrespective of how services are metered, according to SimplySwitch, the price comparison service. With more than 40 per cent of UK households now connected to broadband and growing, SimplySwitch said dial-up services are effectively being priced out of the market, particularly with the arrival of so-called 'free' broadband services that are being bundled with mobile phone contacts, pay TV packages and landline telephone deals.
Its analysis shows that pay-per-minute dial-up customers who surf the net for just two hours per week could save money by switching to broadband. And almost all internet service providers offer unlimited broadband packages that are cheaper than their equivalent dial-up deals, a key consideration for businesses still picking up the bill for dial-up internet access for home and key workers.
Telewest and NTL customers could save almost £60 pounds per year by switching to broadband from dial-up, while those with Tiscali and AOL (recently acquired by Carphone Warehouse) could save £33 and £12 respectively per annum, according to SimplySwitch.
Karen Darby, founder of SimplySwitch, said: "The advantages of switching from dial-up to broadband are obvious. With an 8Mb connection, broadband is 143 times faster than dial-up. Anyone who ditches dial-up will see a vast improvement to their online experience."
For the first time broadband monthly charges are below those of monthly dial-up packages, a situation brought about by intense competition between traditional ISPs and telecoms providers. The cost of broadband internet connectivity has fallen so sharply in the last year that is now cheaper on average than subscription dial-up access for the first time, figures show.
Dial-up subscribers are now almost certain to cut costs by adopting broadband, irrespective of how services are metered, according to SimplySwitch, the price comparison service. With more than 40 per cent of UK households now connected to broadband and growing, SimplySwitch said dial-up services are effectively being priced out of the market, particularly with the arrival of so-called 'free' broadband services that are being bundled with mobile phone contacts, pay TV packages and landline telephone deals.
Its analysis shows that pay-per-minute dial-up customers who surf the net for just two hours per week could save money by switching to broadband. And almost all internet service providers offer unlimited broadband packages that are cheaper than their equivalent dial-up deals, a key consideration for businesses still picking up the bill for dial-up internet access for home and key workers.
Telewest and NTL customers could save almost £60 pounds per year by switching to broadband from dial-up, while those with Tiscali and AOL (recently acquired by Carphone Warehouse) could save £33 and £12 respectively per annum, according to SimplySwitch.
Karen Darby, founder of SimplySwitch, said: "The advantages of switching from dial-up to broadband are obvious. With an 8Mb connection, broadband is 143 times faster than dial-up. Anyone who ditches dial-up will see a vast improvement to their online experience."