Broadband news

23rd November 2007 - SimplySwitch appoints Loanmakers as exclusive secured loan partner

After an exhaustive search of loan brokers nationwide, SimplySwitch, the national price comparison service, has signed-up Bolton-based Loanmakers as its exclusive secured loan partner.

SimplySwitch offers an independent and free price comparison and switching service across the UK. The service now covers numerous sectors including energy, broadband, home phone, credit cards and car insurance.

Alistair Tillen, Managing Director of SimplySwitch, comments: "We are delighted to be working in partnership with Loanmakers. We already offer customers a comparison service that incorporates a large number of sectors. Adding 'secured loans' to the mix represents a significant opportunity for the business and makes SimplySwitch a real 'one stop shop' for customers.

"We chose Loanmakers, in particular, because of their incredible speed-of-response to customer enquiries and excellent case-management system. Having met with a number of other brokers, we feel that Loanmakers is the perfect company to extend our offering to secured loans while maintaining the level of service that our customers have come to expect."

Tim Wheeldon, Managing Director at Loanmakers agrees: "This partnership means a great deal for Loanmakers. Being chosen ahead of our competitors in the industry for this high profile contract demonstrates the impressive team that we have on board. The growth that the company has sustained in the last 12 months, and the hard work that this has meant, has been justly rewarded. In addition, the win means that further growth will be possible in coming months."

9th October 2007 - O2 joins the broadband battle

On 15 October, O2 will finally join the broadband battleground with the launch of its new service, 'O2 Broadband'. Entering into an already crowded marketplace, O2 has pledged to 'make broadband better' with a service that is simple to use, offers transparent connection speeds and provides excellent customer service. Available to both existing and non-O2 customers, O2 Broadband will offer:

• Connection speeds of up to 20Mb
• Free wireless router
• Free McAfee internet security
• 24 hour customer services helpline, free from UK landlines and O2 mobiles
• Unlimited downloads (subject to fair usage policy)

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:
"O2 is the third mobile phone operator to enter the home broadband market, following entries by both Orange and Vodafone. As expected, O2 only offers its most competitive deals to its mobile customers [see price table below], but it has taken the opportunity to introduce some innovative customer service features.

"For instance, before a customer signs up, O2 will check their phone line to estimate the likely connection speed. They will then ensure that the customer is placed on a package appropriate to the speed that their line can support. This will be re-checked a month later to ensure the package is still appropriate and that the customer only pays for the speed that they receive.

"Internet service providers (ISPs) have received heavy criticism for failing to deliver their advertised connection speeds. While all ISPs (including O2) are careful to state ‘up to’ speeds in their advertising, we feel something must be done to give consumers a better understanding of what they're actually paying for. Assuming that O2’s system works effectively for the customer, we would like to see this rolled out across the industry. It's high time that customers were protected from paying for a service that they have little or no chance of receiving.

"As far as O2's new offering goes, there are definitely cheaper deals available elsewhere. Line rental isn’t included in the price and, at launch, O2 Broadband will only be available to 50 per cent of the UK. O2 is hanging its hat on good customer service and faster-than-average connection speeds. At present, there are only a handful of ISPs that offer speeds of up to 20Mb, and O2 mobile customers certainly get a good-value deal at this speed. It will be interesting to see how well O2 fares in this highly competitive market and whether the quality of its service lives up to its promises."

O2 Broadband – Prices for non-O2 customers*

*O2 customers pay £10 per month less for each package.

Prices exclude line rental of £10.50 per month.
'Unlimited' usage is subject to a fair usage policy.
Contract length is 12 months.

8th October 2007 - For the first time, TalkTalk customers able to walk

From 11 October, thousands of customers tied into TalkTalk's original 18-month 'free' broadband deal will be able to switch providers for the first time.

TalkTalk's deal, launched on 11 April 2006, was the UK's first 'free' broadband offer costing just £20.99 per month. Hugely popular at the time, it attracted over 340,000 customers during its first eight weeks, causing a massive oversubscription that left TalkTalk unable to cope. Because the deal was so popular, many early customers experienced long delays and poor customer service. However, it is not until now that they have been able to switch.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:
"The market has changed dramatically over the last eighteen months and TalkTalk is no longer the only supplier to offer this type of 'bundle' package. Although it's made an ongoing commitment to remain the cheapest supplier, competitors such as Tiscali, BT and Virgin Media now offer additional services such as TV on demand and mobile phones.

"TalkTalk was blighted by customer service problems and, despite spending £15m on improvements, many customers remain unhappy. A year and a half is a long time in this industry and there are now a multitude of deals to choose from. While TalkTalk still offers one of the UK's cheapest home phone and broadband bundle, those customers who suffered at the beginning will now be considering their options.

"Research by SimplySwitch.com indicates that internet service providers today offer almost six times better value for money than they did before TalkTalk launched its 'free' broadband offer. The industry has become far more competitive over the last 18 months, and it's to TalkTalk's credit that it still offers one of the cheapest deals. However, while customers might be tempted to base their choice purely on price, we would always advise people to choose the package that best suits their needs and lifestyle.

"When choosing a broadband deal, customers should always check the small print for things like download limits, contract length and exit penalties. For anyone looking for a home phone and broadband package, TalkTalk does offer good value. However, it still insists that customers sign up for a minimum of 18 months. For those who signed up at the beginning, taking on such a lengthy contract has been no bed of roses."

Today's top home phone/broadband bundle deals (8Mb, high usage allowance):

Source: SimplySwitch.com

Accurate 8 October 2007

20th September 2007 - Broadband providers failing to deliver the advertised service

With more than half of the UK now signed up to broadband, high speed connections are becoming increasingly popular. However, Internet service providers (ISPs) have come under fire for not providing the speeds that they advertise. Research by Computer Active has shown that 62% of broadband users are achieving less than 50% of their advertised speed. Service providers were also attacked recently for advertising ‘unlimited’ broadband deals that were, in fact, limited by companies’ Fair Usage Policies.

Karen Darby from SimplySwitch.com, the price comparison and switching service, comments:

“While ISPs are careful to state ‘up to’ speeds in their advertising, we feel something must be done to give consumers a better understanding of what they’re actually paying for. The bandwidth that a customer receives is dependent on their distance from their local exchange, as well as the number of people that are using the Internet at the time. However, a customer’s likely connection speed could easily be calculated by taking these factors into account. Because of this, ISPs should be able to tell potential customers their ‘typical’ connection speed, given the customer’s post code and phone number. This would give people a far better indication of what they’d get for their money.

“As demand for high speed connections increases, ISPs will find it harder and harder to cope. If nothing is done, we will soon find ourselves in a situation where demand outstrips ISPs’ ability to deliver and the ‘information super-highway’ transforms itself into the M25 during rush hour. Fortunately, Ofcom is preparing to launch a major consultation to determine what needs to be done to keep the UK’s infrastructure on track with the rest of the world.

“In the meantime, we urge Ofcom to enforce a more ‘honest’ approach from broadband providers. We would like to see ISPs provide ‘likely’ connection speeds as standard, as well as clarifying their worryingly vague ‘Fair Usage Policies’.”

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Sign a petition to lobby Ofcom to force providers to display 'typical' connection speeds by visiting http://petitions.pm.gov.uk/Crystalclear/

17th September 2007 - Orange to switch customers from dial-up to broadband

Orange Broadband will be switching its 92,000 dial-up customers to a 2Mb broadband service. Customers are currently being told that Orange’s £14.99-a-month ‘Anytime Dial-up’ service will end in December and that they will be upgraded automatically. The replacement service, which also costs £14.99, allows up to a 2Mb connection, has a 2GB download allowance and comes with a free modem.

However, while Orange’s broadband service does offer a much faster connection than its dial-up, customers should not accept it automatically, and should instead use the opportunity to shop around.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:

“While it may be tempting to accept the new service automatically, people should be aware that there are far better deals available. For £14.99, customers could get much higher connection speeds or unlimited download allowances. If they’re prepared to ‘bundle’ their home phone and broadband together, the deals get even better. Instead of accepting the new deal automatically, we urge customers to shop around and see what they could get for their money.”

Earlier analysis by SimplySwitch.com revealed that, by January 07, broadband had already overtaken dial-up, not only in terms of speed, convenience and popularity, but also in terms of price[i]. With the average Briton spending over two and a half hours online every day[ii], SimplySwitch.com calculated that if someone surfs the net for just two hours per week, and pays for their dial-up by the minute, they would save money by switching to broadband. Likewise, if a customer was paying a monthly fee for unlimited dial-up access, their supplier almost certainly provided an equivalent broadband deal for the same price or less.

Karen Darby continues: “The advantages of switching from dial-up to broadband are obvious. With an 8Mb connection, broadband is 143 times faster than dial-up[iii]. You can download far larger files, watch videos online, use a wireless connection and you’ll even save money as well. Anyone who ditches dial-up will see a vast improvement to their online experience.

“Some people still believe that broadband requires the installation of extra cables. This is not the case as 99.8% of UK households have ready access to broadband through their existing telephone landline[iv]. Basically, if you currently have a home telephone, and don’t live in an isolated area, you should have access to broadband. Unlike when changing broadband suppliers, you won’t need a MAC (Migration Authority Code) to switch from dial-up to broadband and, if you use a service like SimplySwitch, the whole process is free and takes less than five minutes.”

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[i] Research carried out in January 2007

[ii] Survey conducted on behalf of Google

[iii] Dial-up: 56 kbps (0.056Mb), Broadband: up to 8000 kbps (8Mb)

[iv] Source: BT

27th July 2007 - Sky announces full year results

27 July 2007. British Sky Broadcasting today gave its full-year trading update. BSkyB's operating profit fell 7% to £815 million because of heavy investment in new services such as broadband and home phone. However, Sky’s marketing drive has been a huge success. The company now has 716,000 broadband subscribers and 526,000 ‘Sky Talk’ customers.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:

“Sky’s home phone and broadband products have continued to grow in popularity. This is great news for competition and should prompt rival suppliers to respond in terms of lower prices and better customer services. In order to attract new subscriptions, Sky spent around £70m in advertising in the first six months of the year alone - a clear indication of how fierce competition has become within the telecoms sector.

“While Sky’s bundle packages have proven popular with customers, anyone thinking of signing up should bear in mind that, though competitively priced, Sky’s home phone and broadband offers are only available to Sky TV subscribers.

“Customers happy to live without Sky TV should look elsewhere as they’d need to pay at least £15 a month for the most basic TV package in order to take advantage of the offers. With Sky, line rental is still paid to BT, so this cost must also be taken into account when comparing deals. Another barrier for many households is that Sky’s broadband service is still unavailable to 30% of the UK.

“Those looking for a new home phone or broadband package should take into account a range of factors when making their decision. Rather than basing their choice purely on price, people should always check the small print for things like contract length, exit penalties, download limits or ‘fair usage policies’. We would always advise customers to check out all the options and select the service that best suits their needs. Bundled packages can offer excellent value, but only if a customer genuinely wants to use all of the products.”

11th July 2007 - Sky announces results

11 July 2007. British Sky Broadcasting today announced its trading update for the three months to 30 June 2007

- Sky Broadband customers have increased by 259,000 to 716,000 - Sky Talk (home phone) customers increased to 526,000 - Sky now covers 70% of the UK for its home phone / broadband services

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:“Sky’s bundled products have continued to prove popular, thanks largely to their competitive headline prices and the range of services available.

“Customers should bear in mind that the bundled offers are only available to Sky TV subscribers. Those not interested in a TV package should look elsewhere, as they’ll need to pay a minimum of £15 a month for Sky’s most basic TV package. With Sky, as with other providers, line rental (£10.50 per month) is still paid to BT, so this cost must also be taken into account when comparing deals. Another barrier for many households is that Sky’s high-speed broadband is currently available to just 70% of UK households, though this level of coverage is six-months ahead of Sky’s plans.

“Sky’s telecoms products have been well received, which is great for competition in the sector and should help drive prices down further. However, Sky’s dispute with Virgin Media, following their failure to agree on terms for Sky to be carried on Virgin’s cable channels, has been less than positive.

“It is interesting to see that the negative publicity it created has not deterred partners. Sky and Tiscali UK recently announced a deal to add the full set of Sky basic channels to the Tiscali TV platform. Tiscali was perhaps inspired by the 47,000 customers Virgin Media lost in the quarter following its dispute with Sky.

“Those looking for a new home phone or broadband package should take into account a variety of factors when making their decision. We would always advise customers to check out all the options and select the service that best suits their needs. Bundled packages can offer much better value than just broadband, but only if a customer is genuinely interested in all the products.”

2nd July 2007 - TalkTalk introduces cheaper ‘free broadband’ option

TalkTalk will now offer free broadband on its £5.89 per month ‘Talk2 International’ tariff. ‘Talk2 International’ includes unlimited evening and weekend calls within the UK, plus calls to 36 international destinations. Broadband (up to 8Mb) will now be included in the deal with a monthly download limit of 40GB. The total cost of the tariff comes to £16.39 a month (including £10.50 line rental) and customers must sign up for a minimum of 18 months. There is a one-off connection fee of £29.99. Previously, free broadband was only available on TalkTalk’s ‘Talk3 International’ tariff which costs a total of £20.49 per month.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:

“This is fantastic news for the consumer. TalkTalk has decided to continue its price war with BT and has introduced a great value bundle product. Previously, free broadband was only available on the more expensive ‘Talk3 International’ tariff. Customers will now receive free broadband with the ‘Talk2 International’ tariff, a deal that’s cheaper because it only includes free evening and weekend calls. Because ‘Talk2’ excludes daytime calls in favour of a lower monthly price, it will better suit the calling habits, and wallets, of thousands of UK households.”

While this new offering provides excellent value, there are a few things that customers should bear in mind. Darby continues:

“While TalkTalk’s customer service is slowly improving, it retains a poor reputation. Following a recent investment in customer service staff, TalkTalk should be able to activate a new customer’s broadband in around four weeks. However, despite the investment, a small number of customers are still reporting problems, something new customers should be aware of before signing up.

“Another thing that people should bear in mind is that TalkTalk’s free broadband offer is only available to 70% of UK households. If a customer lives outside one of TalkTalk’s ‘local loop unbundled’ areas, broadband will cost £15 per month on top of the price of the call package and line rental.

“The contract length, at 18 months, seems excessively long for the fast-changing communications sector and customers should always take into account the £30 activation fee when comparing rival tariffs.”

15th June 2007 - Yomi creates a test story

This is the, long awaited, test story. It's a great relief to know that it's finally here.

9th May 2007 - Virgin Media posts first quarter loss

Virgin Media, the UK's second-largest pay-television operator, posted a quarterly loss of £15.3m after subscribers defected to Sky and the company lost telephone customers.

Karen Darby, founder of price comparison service SimplySwitch.com comments:

“Despite spending £25 million on a high-profile marketing campaign, Virgin Media hasn’t got off to a flying start. While Virgin did well in adding 87,900 broadband subscribers, its core TV business has suffered following its dispute with Sky.

“Over the coming months, Virgin Media will try to attract customers with its bundled packages, some of which are highly competitive. Virgin’s bundle deals have already proven popular and, unlike Sky, Virgin is able to offer a mobile phone element into the package.

“Many people still feel uncomfortable signing up their TV, telephone, broadband and mobile phone ‘wholesale’ to just one supplier. However, if a customer will make good use of all the elements on offer, choosing a bundle can be a good way of saving money.

“However, while Virgin Media’s packages offer good value, some individual products are actually quite expensive. Virgin’s ‘XL’ 10Mb broadband, for instance, costs £37 per month. This is £17 more than TalkTalk’s 8Mb deal, which includes line rental and free phone calls. Customers should also remember that it’s more difficult to switch providers once they’ve signed up to cable.

“Competition is hotting up in the TV bundle market. Not only is Virgin Media in fierce competition with Sky, but new offerings such as Tiscali’s ‘TV on-demand’ service and BT Vision have started to appear. Competition is great for the consumer, and should help drive prices down, but it may prove less popular with Virgin Media’s accountants.”

11th April 2007 - The first anniversary of free broadband

On 11 April 2007, a year will have passed since The Carphone Warehouse introduced its TalkTalk ‘free’ broadband offer. Despite the delivery issues, TalkTalk’s ‘bundle’ package proved extremely popular and sparked a fierce price war in the broadband market. A report by SimplySwitch.com, the price comparison and switching service, reveals how broadband, and people’s attitudes towards it, have changed in the 12 months since TalkTalk’s launch.

Key findings from the report:

• ISPs today offer almost six times better value for money than they did before TalkTalk introduced its free bundled broadband
• 72% of people now see broadband as an essential service
• 48% think that broadband prices have stayed the same even though both Talk Talk, Orange and BSkyB have launched free broadband packages.

For the report, SimplySwitch looked at suppliers’ fastest broadband deals in April 2006 and March 2007. They compared each deal’s monthly cost to its speed of connection, resulting in a measure that shows the relative cost of broadband, or ‘value for money’1. Measured in ‘£s per Megabit (Mb)’, lower ‘costs’ indicate better value for money:

As the graph shows, in the past 12 months, customers have benefited enormously from the competition between suppliers2. On average, ISPs today offer 5.8 times better ‘value for money’ than they did just one year ago (£12.80 per Mb in April 2006 compared to £2.20 per Mb in March 2007).

Perhaps because of broadband’s new-found affordability, more than 40% of us now have an ‘always-on’ connection. 72% see broadband as an essential service with only 26% claiming that it’s ‘nice to have, but could live with out it’3. However, despite the increasing popularity of broadband, some people still have a way to go before they fully understand it. 22% did not know how fast their broadband was.

Karen Darby, founder of SimplySwitch.com, comments: “We all know that the broadband market is incredibly competitive, but it’s amazing to see how much it’s changed in just 12 months. Since the launch of TalkTalk, rival suppliers have had to react fast to avoid the risk of being left behind. This has been fantastic for the customer. The market’s now changing so rapidly that anyone who’s been on the same package for a year or more should be able to switch to a much faster deal and save money.

Darby has the following advice for those choosing a new broadband package:

“For fast Internet access, consider a deal that provides a connection of up to 8Mb (8 megabits per second). Bear in mind, however, that depending on a number of factors, including your property’s distance from the supplier’s ‘exchange’, you may not achieve the full speed advertised. At SimplySwitch.com we can tell you your household’s maximum ‘access speed’.

“Some cheaper broadband deals limit the amount that you can download each month. If you’re likely to download lots of music and video files, consider an ‘unlimited’ broadband package. Watch out though. Even ‘unlimited’ packages are subject to ‘Fair Usage Policies’ and all suppliers have the right to limit your service if they believe you’re using your broadband excessively.”

1. How ‘value for money’ was calculated:

To measure ‘value for money’, SimplySwitch compared the monthly cost of the supplier’s broadband to its speed of connection (for many suppliers, broadband cost was split from the cost of a bundle package).

Monthly cost (£) ÷ Speed of connection (Megabits or ‘Mb’) = £ per Mb

The resulting measure (£ per Mb) is an indication of the ‘value’ that the customer gets for their monthly fee.

e.g. If a supplier charges £20 per month for a 2Mb connection, their tariff’s value for money is £10 per Mb (£20 ÷ 2Mb = £10 per Mb). If, 18 months later, the supplier charges £20 for a 4Mb connection (twice as fast), their ‘value for money’ becomes £5 per Mb (£20 ÷ 4Mb = £5 per Mb).

2. ‘£ per Mb’ figures

3 . Research conducted online by TPoll – 1,001 respondents

13th March 2007 - Broadband providers come under fire for (un)Fair Usage Policies

With more than 40% of the UK now signed up to broadband, high speed services with unlimited downloads are becoming increasingly popular. However, customers keen to use their ‘unlimited’ broadband to download lots of video and music content have been left stunned as suppliers cut down on their bandwidth (speed of broadband) or cut them off completely. Because of small print regarding ‘Fair Usage Policies’, Internet Service Providers (ISPs) are able to restrict bandwidth, especially during peak times, if customers are deemed to have used their ‘unlimited’ broadband excessively.

Broadband suppliers claim that Fair Usage Policies are only likely to affect those using ‘file sharing’ or ‘peer-to-peer’ software. However, many users sign up to fast, ‘unlimited’ broadband specifically to download large files, often via this type of facility.

Karen Darby from SimplySwitch.com, the price comparison and switching service, comments:

"Broadband suppliers should not be allowed to call their package ‘unlimited’, if, in fact, they are able to restrict usage. Even if relatively few broadband customers come up against this ‘usage threshold’, it’s amazing to think that suppliers have been mis-representing their product in this way. What makes this even more confusing is that broadband suppliers have failed to specify what ‘unfair usage’ actually means.

“Downloadable content is becoming readily available from mainstream broadcasters such as Channel 4 and BBC. Following the launch of services such as 4oD (Channel 4 on Demand), more and more people will be downloading entire films and television programmes to their PCs. Most would expect their unlimited broadband package to cover them adequately. This, however, is not necessarily the case.”

“As demand for high quality downloads increases, ISP’s will find it harder and harder to cope. We may soon find ourselves in a situation where demand outstrips broadband providers’ ability to deliver a reliable high-speed connection. Unless something is done, the ‘information super-highway’ could soon transform itself into something more closely resembling the M25.”

8th February 2007 - NTL re-launches as Virgin Media

NTL, the cable TV, telephone and broadband supplier has re-launched as Virgin Media. NTL customers have long suffered from poor customer service brought about by the company’s lack of resources. Virgin claims to have spent nine months improving the service, including the implementation of a new billing system and a £5m investment in customer services.

Karen Darby of SimplySwitch.com, the price comparison and switching service, comments:

“Virgin Media is launching into a tricky market. Multi-channel TV is at the heart of Virgin’s offering, so it faces stiff competition from rivals such as Sky, which recently launched its ‘See, Surf, Speak’ package. However, 80% of people who want multi-channel TV have opted for Freeview, a completely free service that offers a decent selection of channels and is being pushed heavily as the countdown to the digital switch-over continues. Since 2004, only 3% of the UK households interested in multi-channel TV have signed up to cable.¹

“On the telecoms/broadband front, Virgin Media’s bundle packages are competitively priced but people should bear in mind that it’s more problematic to switch providers once they’ve signed up to cable. This may present a problem, especially as many customers suffered from poor customer service in the days before NTL was re-branded.

“Another obstacle that needs to be overcome is that lots of people are uncomfortable signing up their TV, telephone, broadband and mobile phone ‘wholesale’ to just one supplier. While Virgin Media’s bundle packages do offer good value, individual products are actually quite expensive. Virgin’s 10Mb unlimited broadband package costs £35 per month. This is £15 more than TalkTalk’s 8Mb deal that includes line rental and free phone calls.

“If Virgin’s investment really has improved NTL’s service, then their competitive pricing may win them more subscriptions. If, however, the customer sees little difference, Virgin Media might struggle to increase its market share.”

¹ Figures from Ofcom

7th February 2007 - Ofcom makes it easier to switch broadband providers

From 14 February 2007, Ofcom will require broadband providers to supply consumers with a Migration Authorisation Code (MAC) upon request and free of charge. A MAC is a unique alphanumeric reference that enables customers to switch broadband provider smoothly and with minimal disruption. Without a MAC, customers can be left without broadband for some time while the transfer is made.

Karen Darby of SimplySwitch.com, the price comparison and switching service, comments: “From 14 February, Ofcom will force suppliers to provide migration authorisation codes (MACs) on request for free. A MAC is a unique reference number that enables customers to switch broadband suppliers with minimal disruption. Up until now, providers could charge for providing a MAC, which added an extra stumbling block to the switching process. From Valentine’s Day, switching broadband should be easier, which is excellent news for the consumer.

“However, this is only the first step towards helping the consumer and much more needs to be done. With the broadband market developing so quickly, we would like to see customers on rolling contracts that can be terminated at any time without penalty. At the moment, customers can be locked into broadband deals for as long as 18 months. The market can change enormously during that period. Indeed, if broadband continues developing at its current rate, 32Mb could be the norm in just 18 months time. In such a competitive market, any customer that signs a long-term contract will find their deal completely outdated months before they’re free to switch suppliers.

“In the energy market, if a customer feels they’re paying too much, or receiving poor service, they can leave their provider at any time. It would be healthy for the telecoms market if a similar practice was put in place, both in terms of maintaining competitive pricing and improving customer service.”

7th February 2007 - The changing face of broadband

A report by SimplySwitch.com, the price comparison and switching service, has revealed the astonishing rate at which broadband is becoming both faster and cheaper. Comparing today’s deals to those available in July 2005, SimplySwitch calculates that customers now receive seven times better ‘value for money’ than they did just 18 months ago.

With over 40% of the UK already signed up to broadband, the findings should come as a wake-up call to those customers who have been with the same package for a year or more.

Karen Darby, chief executive of SimplySwitch.com, comments: “The broadband market is incredibly competitive, but even we were surprised at how much it’s changed in a relatively short period. 18 months ago, broadband was fairly expensive and only available up to 2Mb. Connections are now available up to four times faster for an average of just £21 per month¹. Thousands of people who have been on the same deal for a year or more could switch to a much faster connections and save money in the process.”

For the report, SimplySwitch looked at suppliers’ fastest broadband deals available in both July 2005 and January 2007. They compared each deal’s monthly cost to its speed of connection, resulting in a measure that shows the relative cost of broadband, or ‘value for money’². Measured in ‘£s per Megabit (Mb)’, lower ‘costs’ represent better value for money:

Over the past 18 months, every provider showed a vast improvement to the relative cost of broadband. In fact, on average, the suppliers today offer almost seven times better ‘value for money’ than they did in July 2005³. With broadband developing so quickly, long term contracts, especially those lasting 18 months, should be viewed as a mixed blessing. By locking customers into long-term contacts, suppliers are able to offer market-leading prices. However, the customer should bear in mind that, by the time they are free to switch suppliers, their deal is likely to be extremely outdated.

Darby says: “With the broadband market developing so quickly, we would like to see customers on rolling contracts that can be terminated at any time without penalty. At the moment, customers can be locked into broadband deals for as long as 18 months. We’ve seen how much the market can change during that period. If broadband continues developing at its current rate, 32Mb could be the norm in 18 months time.

“In the energy market, if a customer feels they’re paying too much or receiving poor service, they can leave their provider at any time. It would be healthy for the telecoms market if a similar practice was put in place, both in terms of maintaining competitive pricing and improving customer service.

“One step in the right direction is that, from 14 February, Ofcom will force suppliers to provide migration authorisation codes (MACs) on request for free. A MAC is a unique reference number that enables a customer to switch broadband suppliers with minimal disruption. Up until now, providers could charge for providing a MAC, which added an extra stumbling block to the switching process.

“From Valentine’s Day, switching broadband should be easier, which is excellent news for the consumer.”

¹ Average cost of the main suppliers (for many suppliers, broadband cost was split from the cost of a bundle package).

² Here comes the science bit… how ‘value for money’ was calculated:

To measure ‘value for money’, SimplySwitch compared the monthly cost of the supplier’s broadband to its speed of connection. Monthly cost (£) ÷ Speed of connection (Megabits or ‘Mb’) = £ per Mb The resulting measure (£ per Mb) is an indication of the ‘value’ that the customer gets for their monthly fee. e.g. If a supplier charges £20 per month for a 2Mb connection, their tariff’s value for money is £10 per Mb (£20 ÷ 2Mb = £10 per Mb). If, 18 months later, the supplier charges £20 for a 4Mb connection (twice as fast), their ‘value for money’ becomes £5 per Mb (£20 ÷ 4Mb = £5 per Mb).

³ Average of £17.35 per Mb in 2005 compared to £2.62 per Mb in 2007.

17th January 2007 - Broadband now cheaper than dial-up

Analysis by SimplySwitch.com, the price comparison and switching service, has revealed that broadband has overtaken dial-up, not only in terms of speed, convenience and popularity, but also in terms of price.

Whether a customer pays for their dial-up per minute, or pays a monthly fee for ‘unlimited access’, they are now almost certain to make savings by switching to broadband. With over 40% of households now connected to broadband, and many more expected to subscribe this year, dial-up services are effectively being priced out of the market.

The average Briton spends over two and a half hours online every day¹. SimplySwitch.com has calculated that if someone surfs the net for just two hours per week, and pays for their dial-up by the minute, they would save money by switching to broadband².

Likewise, if a customer pays a monthly fee for unlimited dial-up access, their current supplier almost certainly provides an equivalent broadband deal for less. Indeed, in many cases, free telephone calls are included in the broadband package, something that is not available with dial-up. See below for some example deals (all allow unlimited access to the Internet):

Karen Darby, founder of SimplySwitch.com, comments: “The advantages of switching from dial-up to broadband are obvious. With an 8Mb connection, broadband is 143 times faster than dial-up*. You can download far larger files, watch videos online, use a wireless connection and you’ll even save money as well. Anyone who ditches dial-up will see a vast improvement to their online experience.

“One of the major barriers to switching is that many people still believe broadband requires the installation of extra cables. This is not the case as 99.8% of UK households have ready access to broadband through their existing telephone landline**. Basically, if you currently have a home telephone, and don’t live in an isolated area, you should have access to broadband. Unlike when changing broadband suppliers, you won’t need a MAC (Migration Authority Code) to switch from dial-up to broadband and, if you use a service like SimplySwitch, the whole process is free and takes less than five minutes.”

1 Survey conducted on behalf of Google, March 2006

2 Based on difference between BT Together Option 2 (using weekday evening dial-up costs) and TalkTalk’s ‘Talk3’ package

3 £25 installation if broadband is taken alone

* Dial-up: 56 kbps (0.056Mb), Broadband: up to 8000 kbps (8Mb)

** Source: BT

8th January 2007 - Vodafone launches broadband deal

Vodafone has become the latest phone group to enter the UK broadband market. Its £25 per month ‘Vodafone At Home’ deal offers up to 8Mb unlimited broadband and inclusive landline calls at anytime to any UK landline, as well as 25% off calls to UK mobiles against standard BT rates. Line rental is included in the monthly price. Vodafone At Home is available for installation from mid-January 2007, and has a minimum 18-month contract. Only customers with a Vodafone mobile contract are eligible for the deal.

Karen Darby, of price comparison specialist SimplySwitch.com comments: “Vodafone at Home isn’t the cheapest deal on the market but it does provide an attractive package. Customers who aren’t currently with Vodafone mobile might find it a step too far to change mobile providers as well as signing up to an 18 month broadband deal… a long time considering how rapidly the broadband market is evolving. However, this deal is aimed at Vodafone’s existing customers, and with a claimed 16 million in the UK, levels of take-up could be high.

“At £19.99 per month for a similar package, TalkTalk remains one of the UK’s cheapest providers. However, TalkTalk still suffers from long waiting times and those well-documented customer service issues. Therefore, Vodafone, with its UK call centre and free technical support, has every opportunity to win on this front as long as it doesn’t fall into the same ‘over-subscription’ trap. Also, unlike TalkTalk, Vodafone rents its lines from BT, so a full-speed, high quality connection should be available in 97% of households. The £19.99 TalkTalk deal is available in just 70% of the UK.

“Right now, the UK telecoms and broadband markets have never been more competitive. While the Vodafone package offers good value, we expect rival providers to match TalkTalk’s inclusive ‘£19.99 per month’ deal within the next few months. If such deals become available without the extra hassle of changing mobile providers, they could prove more attractive than Vodafone at Home, both in terms of price and the convenience of switching.”

18th December 2006 - Switch to save £1,000 in 2007

Market analysis by SimplySwitch.com has revealed that consumers could save £1,101 in the New Year simply by switching to better energy, broadband, phone and credit card deals. For people who have not switched providers for a year or more, average savings could easily cover a trip to New York, a second-hand car or even a brand new plasma screen. Unless consumers take action, up to £31 billion could be wasted nationally on over-priced bills throughout the year.

Karen Darby, of price comparison service SimplySwitch.com, comments: “People have better things to spend their money on than gas, electricity and telephone bills. While it can seem mundane, consumers should invest a few minutes each year to compare suppliers and their prices. Costs have changed so dramatically over the past 12 months that people would be surprised at the savings they could make.”

Gas and electricity

Energy prices have doubled in the last three years and a huge difference has developed between the cheapest and the most expensive suppliers. If a consumer has not switched for a year or more, there are almost certainly big savings to be made. In particular, customers with moderately high energy usage (for example, those running a family home) should check their tariff against the competition at least once a year.

Average household saving per year: £200

Home phone

The home phone market is incredibly competitive. More and more suppliers are offering telephone services and prices continue to fall. However, many consumers have yet to take advantage of these reductions as they have never switched. With such a large range of providers and tariffs now available, the most cost-effective one for a customer depends entirely on their calling pattern. In general, average phone users could save up to 70%.

Household saving: £128

Broadband

Latest figures show that more than a third of UK households now have broadband. There has been such a large influx of broadband providers over the past year that the market is now more competitive than ever before. In general, customers who have not switched recently should be able to upgrade their broadband package while still saving money.

Ofcom recently introduced new rules that will make it easier for customers to switch broadband suppliers. From 14 February 2007, suppliers will have to provide a migration authorisation code (MAC) on request for free, making it easier than ever before to switch to lower priced packages and faster broadband connections.

Saving per household (over 18 months): £228*

Mobile phone

Taking advantage of ‘cash back’ deals from online retailers, consumers can get the latest handsets, with up to 750 minutes and 150 texts a month included, completely free. These deals normally involve signing up to a minimum 12 month contract and paying the full-price monthly line rental before later claiming the money back. An average customer on a contract pays at least £30 per month. If they are not on a cash back deal, this money is effectively wasted.

Saving per person: £360

Credit cards

With a number of cards still offering 0% APR for 9-12 months, there is no point paying the current industry average of 16.99%**. In the UK, the average credit card debt is £1,100***, so those who have not yet switched to a 0% deal could be wasting a fortune. Obviously, the best way to save money on credit cards is to pay the debt off. With the savings made on other utilities, consumers should be one step nearer to achieving this goal.

Average saving per person: £185

Total saving: £1,101

Karen Darby says: “Many people don’t realise how easy it is to make these savings. If you phone a service like SimplySwitch, you can switch as many, or as few, services as you like. A complete financial overhaul takes less than take half an hour and, with over £1000 in savings to be made, it could be the most productive 30 minutes you spend all year."

* BT Total broadband compared to TalkTalk broadband – 18 month contracts
** Source: creditaction, 1 Dec 2006
*** Source: BBC.co.uk, April 2004

8th December 2006 - Ofcom has announced the launch of new accreditation scheme

Ofcom is to overhaul the way it operates its price comparison accreditation scheme to help consumers find the best deals when looking for internet, telephone and digital TV services.

One of the changes introduced requires an offline method of accessing information so that the service is available for all consumers and not only those that have internet access.

Karen Darby, CEO of SimplySwitch.com comments: “When looking for the best deal, the off-line channel is vital for consumers and one that we have offered ever since we launched our free service in 2002. Many customers are happy to research online, but like the assurance of being able to talk to an advisor to complete a new application.

“In the UK, we enjoy one of the most competitively priced home phone markets in the world and broadband prices continue to fall at an unprecedented rate. We think this is an encouraging step forward and will help many sign up to more competitively priced tariffs, but we advise consumers to go to an independent source for a truly impartial comparison.”

4th December 2006 - BT launches BT Vision

BT today launched its next generation television service, BT Vision. Customers will receive a free V-box, effectively giving them ‘freeview’ but they will also be able to download films and programmes on a pay-per-view or monthly subscription basis.

Karen Darby, CEO of SimplySwitch.com comments: “BT Vision is tricky concept to understand. In simplified terms, BT has produced a box that gives customers access to the freeview channels; E4, BBC3, BBC News 24 etc. However, their box also connects to a video-on-demand service that has content available for download. Customers have the option of watching these programmes on a pay-per-view basis or by signing up for a monthly subscription.

“However, to access the service, customers must sign up for BT’s ‘Total Broadband’ package, which costs up to £26.99 per month, as well as paying a £90 connection and installation fee. While BT Total Broadband does include free evening and weekend calls to UK landlines, it isn’t amongst the best broadband deals on the market, as other providers offer greater download limits for a lower monthly fee.

“When evaluating BT’s new offering, customers need to ask themselves if the content available for download is really suited to them. If a customer simply wants access to the freeview channels, they might be better off buying a simple set top box. If a customer isn’t interested in broadband, this is definitely not the deal for them.

“Customers should also bear in mind that ‘exclusive’ programmes like Lost won’t be available on BT Vision, at least for the time being.”

18th July 2006 - Sky announces launch of its broadband service

Sky has announced that it will be launching its broadband service. All existing and new Sky TV customers will be able to sign up to broadband.

Almost 8million current Sky subscribers across the UK will benefit from the new service. The broadband market is becoming ever more competitive. Over 10 million homes in the UK now have a connection.

Karen Darby, CEO of SimplySwitch.com comments: "Sky’s broadband launch has been keenly awaited and for existing Sky customers it is an attractive proposition.

"The new offer competes with Orange and TalkTalk’s recently launched "free” broadband services. Take up for them has been significant, but the TalkTalk package has been particularly oversubscribed, with customers who sign up now having to wait to get connected.

"The broadband offer from Sky is reasonably priced, but it is only available to Sky TV subscribers, with those not signed up having to pay £15 a month for the most basic TV package.

"Although it is a good product, I would have hoped Sky would have led the market and not tied customers in for a year as we have seen with Virgin and Help the Aged.

"Bundled products are not suitable for all users and those who do not want a TV package should look at some of the many competitively priced alternatives available. As competition continues to heat up and providers launch more innovative deals, we expect to see prices fall even further over the next 12 months.

"When looking at broadband offers, consumers should take into account the complete first year costs, including set up and the cost of any additional services you have to pay for such as telephone calls, line rental or, in this case, digital TV. It is also worth checking to see how long the contract is and if the provider imposes any disconnection fees.”

Three packages are being offered, with a 12 month contract:

Up to 2mb No monthly fee – 2gb download limit - £40 activation fee Up to 8mb £5 / month – 40gb download limit - £20 activation fee Up to 16mb £10 / month – Unlimited downloads - free activation

6th June 2006 - Carphone Warehouse profit announcement

Carphone Warehouse has announced a rise in profits of 35.5% to £136m. 340,000 people have signed up for its 'free' broadband service since it launched, twice the number expected.

Karen Darby, CEO of price comparison and switching service SimplySwitch.com comments:

"The Carphone Warehouse deal is taking customers by storm, but due to technical issues, some will be disappointed that they can't go live until August.

"As the market is going through a period of significant change, we suggest that customers are careful signing up to long term deals . Orange announced a new 'free' broadband service last week and Sky is rumoured to be launching a rival deal very soon. Other good offers are likely to follow over the coming months as competition continues to heat up .

"However, there has never been a better time to research the market and I urge consumers to look around and check which deal is the best for them. Also, it is worth checking the small print before getting tied into an 18 month contract with what appears to be a good deal now. Customers who are unhappy at having to wait two or three months to get connected should look at some of the many other bundled products available. It can often be cheaper to go for different providers for each service you need, rather than taking a bundled product from one company."

16th May 2006 - BT announced a 5% rise in full year pretax profits to £2,177 million.

BT announced a 5% rise in full year pretax profits to £2,177 million. The group said "new wave" revenues, from IT, broadband and mobile services had helped drive earnings higher, while traditional business revenues have fallen.

Karen Darby, CEO from SimplySwitch.com comments: "BT's profits have been helped by the fact that many competing suppliers are still being forced to use BT lines. We urge Ofcom to put in place additional measures to speed up local loop unbundling. There are some great deals available to consumers, but many suppliers are still beholden to BT to deliver their services.

"BT has faced increasing competition in the home phone and broadband markets. Prices for fixed line calls have gone down by 50% over the last 10 years and voice calls now generate less than 10% of BT's revenues. BT has had difficulties responding to this changing marketplace, due to the price curbs imposed by Ofcom. When these are lifted in August, it will be free to set its own prices and compete for customers. We are expecting the company to try to aggressively retain and win back customers to increase revenues in the voice market, its traditional stronghold.

"We think it is unlikely that BT will slash its prices, as it still has the majority share of the home phone market. However, we expect it to offer more competitive tariffs or new bundled products to compete with companies such as NTL or Homechoice. There is no guarantee that BT won't increase prices. It is worth customers spending a few minutes checking that they are on the best deal available."

2nd May 2006 - Help the Aged has announced a new broadband package of up to 8mb, with no annual contract.

Karen Darby, CEO of the independent price comparison and switching service, SimplySwitch.com comments:

“Anything that encourages older people to get online is a good thing, but those entering the broadband market for the first time should be aware that there are many other more competitively priced products available.

“The Help the Aged broadband deal does have some advantages as it does not tie customers in to a year’s contract and it offers a premium level of customer support charged at local call rates. However, at over £80, the set up costs are significant when compared with other providers – most of whom offer this for free.

“When looking at first year costs alone, consumers can get a 1mb connection for over £100 less than the Help the Aged deal. The advertised 8mb headline rate won’t be available in all areas and a 1mb speed is more than adequate for most people – particularly those new to broadband.

“Broadband prices have dropped significantly in recent months. Over the course of the next year, prices are set to fall even further while the number of homes connected will continue to increase. I would be wary of signing up to a product with high set up costs in such a competitive market.”

11th April 2006 - Carphone Warehouse deal

Carphone Warehouse has announced that it will be offering TalkTalk landline customers national and international calls and up to 8mb broadband for £9.99 a month, plus rental.

Karen Darby, CEO of the independent price comparison and switching service, SimplySwitch.com said:

"This latest offer from Carphone Warehouse is certainly an attractive package that is set to generate an aggressive price war in the home phone and broadband market.

“Broadband prices have already tumbled, but this latest deal will not only help the company attract the customers it is looking for, but force other providers to lower their prices even further.

“There are now 10 million homes with a broadband internet connection. We predict that this announcement and the resulting price war will boost the number of homes with broadband by over 20% by the end of the year. It was also signal the end of dial up internet.

"There are other combined broadband and phone packages already on the market and customers need to check that they are getting into the best deal for their requirements. The Carphone Warehouse deal is an attractive rate at current prices, but it does charge a £29.99 connection fee, a £70 fee for disconnection and tie customers in for 18 months in a market that is ever changing.”

24th March 2006 - BT targets heavy broadband users

BT has today announced that they will be targeting customers who regularly break their monthly broadband download limits. The 3,000 customers they have identified will be given the option of paying for their high use, or risk losing their connection all together.

Karen Darby, CEO from SimplySwitch.com comments: "Ironically, this could be good news for heavy broadband users. If BT pulls the plug on their contract, they will no longer be tied in to a product with a download limit.

“There are many new, competitively priced products with little or no download limits, which could be more suitable for heavy users. It is worth checking what is available before signing up to an alternative BT tariff. Savings of over £100 a year are possible, however not all 'unlimited deals' are actually 'unlimited', so we always check the small print for customers."

SimplySwitch's broadband calculator lets customers know how much bandwidth and download capacity they need each month based on their usage and then compares deals from all of the leading providers, before helping customers to switch to the best one for them.

Users can compare the various deals and then sign up through the website at SimplySwitch.com or via the broadband hotline – 0800 781 1212 – where staff are on call to answer consumers queries about broadband and help them switch.