Cut Your Broadband Bill By 50%


Updated on 17 February 2009 | 74 Comments

Stuck with the same broadband provider for years? With so many juicy deals about, we show you how a few clicks could cut your broadband bill in half.

It's been busy in the broadband market recently. Sales, special offers and the usual January seductions mean British consumers are spoilt for choice when it comes to getting connected.

But with so many offers about, how can you tell if a deal really is a good deal? After all, providers will always try to hook you in with juicy introductory offers, but how do they compare once these deals have expired?

Here are the cheapest packages available for those already with a BT line:

SupplierSpeedMonthly ChargeDownload LimitFirst Year Cost
BT Option 18Mb£7.78 for first 3 months, £15.65 thereafter10GB£164.19
O2 Broadband8Mb£7.34 per month for O2 customers. £12.23 for non customers.Unlimited£88.08/£146.76
PlusNet Option 1 Broadband8Mb£9.75 per month2GB£117
Eclipse Internet Home Lite24Mb£7.78 per month for first three months, £10.72 thereafter.2GB£119.82 (Free setup if switching from another provider, otherwise £29.36)
AOL Wireless8Mb£4.99 for first three months, £14.99 thereafter10GB£149.88

*Prices quoted exclude BT line rental (£10.23 including paperless billing)

As you can see, there are lots of great savings to be made if you're willing to take the plunge.

For example, O2's broadband service, which has been highly praised both in the press and online, is available from just £7.34 per month if you're an existing O2 customer. That's nearly half the cost of BT over a year.

Pay as you go customers also qualify for the discount, as long as they top-up their account by at least £10 every three months.

If you don't fancy switching to O2, and aren't a heavy downloader, service favourite Plusnet comes runner-up in terms of value, with its 8Mb service available for a flat rate of £9.75 per month.

Alternatively, if you're looking for superfast broadband at an affordable price, Eclipse Internet offers a 24Meg service which it says you can tailor to get the best online experience for just £7.78 for the first three months, and £10.72 thereafter.

I haven't tested this service myself, but as with all big decisions, I have looked through some online reviews. Unfortunately, Eclipse fails to shine.

That's important - a few dramas with my internet connection in the past has taught me that customer service is crucial when it comes to broadband.

Often, it's not until something goes wrong that the true mettle of a company is revealed, and it's for this reason I always read reviews before signing on any dotted lines.

Loyalty pays

In addition to these deals, it's also worth looking at the add-ons you can get with your existing providers. For example, Sky customers can get free 2Mb broadband with any of its Sky packages.

Orange offer a similar deal to its existing customers, and as long as you live in an Orange broadband area (about 65% of the UK population) and have an Orange contract (12 month minimum), you can benefit from free broadband with a 10GB usage limit.

The BT dilemma

In my opinion, BT is rather like Marmite. You either love it, or loathe it. But whatever your opinions of BT, the company is making many changes to its billing structure.

On the one hand, it has scrapped charges to both 0870 and 0845 numbers for customers signed up to one of its call packages, and has today announced that freephone 0800 and 0500 numbers would follow suit for its mobile customers from May.

However, Britain's largest home phone supplier also announced last month that it was raising its line rental by £1 a month to £12.50 for standard customers (£11.25 with paperless billing) from April.

Staunch BT supporters are always quick to remind us that they don't mind paying a bit more for a reliable connection. But for those willing to look elsewhere, how does BT compare to its rivals?

Here's how the top five line-rental inclusive providers compare to the traditional BT route:

SupplierSpeedMonthly ChargeDownload LimitFirst Year Cost
BT Broadband and phone Option 18Mb£18.05 for first three months, £25.92 thereafter10GB£287.43
Orange Home Max8Mb£14.68 (with Orange monthly plan)Unlimited£176.16
Tiscali Broadband and Talk Option 18Mb£14.99Unlimited£209.88 (Includes £30 set up fee
myTalkTalk Phone and Broadband8Mb£16.99 a month40GB£233.87 (Includes £29.99 set up fee)
Virgin Broadband and Phone M Package2Mb£16 for first three months, £21 thereafterUnlimited£237
AOL Broadband Platinum 18Mb£20.4910GB£245.88

BT prices don't include line rental increases.

As you can see, there are some real savings to be had if you're willing to ditch your BT line, with the Orange Home Max package emerging as the surprise winner. At £14.68 a month including line rental, you'd save £111.27 over the first year compared to BT.

Unfortunately, this deal is only available to Orange customers with at least a 12 month contract, and those not on the Orange network will have to fork out £24.47 a month (£293.64 over 12 months) for the same deal.

Virgin Media is another popular alternative to BT, and well worth considering if you're one of half the population that lives in a cable area.

Unlike traditional copper wires, cable broadband is less affected by how far you live from the telephone exchange, enabling you to surf at speeds closer to what you pay for.

Virgin has launched a sale until the end of the month, which mainly pushes its 10Mb service. However, its cheaper 2Mb service is still available - though you'll have to ring up and ask for it.

Finally, for die-hard BT fans, until 13th February, new customers ordering broadband will get £20 discount of their next bill if you sign up to one of its online packages.

Switching broadband providers may sound like a hard task, but by the time you've calculated the potential savings, it will probably be well worth your while.

Remember to shop around, and don't be afraid to haggle for free extras such as a wireless router if not already included. Companies realise how competitive the broadband market is, and will often go that extra step to secure your custom.

Other than that, the broadband world really is your oyster!

More: Beat These Five Broadband Blues / 50Mb Broadband Is Here

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