Broadband wars

By JO THORNHILL
Updated: 11:21 EST, 4 September 2006

View
comments

ONLY a few years ago, broadband in the home was a rarity - just something for the computer 'nerds'.

But thanks to a price war between providers, almost 10 million homes now have the high-speed internet connection.

Among the new converts is retired couple Georgina Lock, 63, and her husband Timothy, 70. They switched to broadband after finding an old picture of Timothy's great-grandfather, Samuel Lock, among the pages of a family Bible and decided to try to find out more about him and other members of their families.

But Georgina, a former childminder, and Timothy, an ex-film technician, were frustrated by the slowness of their dial-up connection as it made online research a long and tiring process. But even though they wanted greater speed, they were keen to keep costs down - particularly on set-up charges.

'After searching online, we found that Toucan offered the best deal for our needs,' says Georgina, of High Wycombe, Buckinghamshire, who has two grown-up sons and four grandchildren.

'We pay £14.99 a month to Toucan plus our line rental to BT - 11.99 a month. We are pleased with the far faster internet speed. We have been able to trace our family trees as far back as 1653. I spend about two or three hours online each day so it is nice to know that usage is all covered by the monthly fee.'

The ToucanSurf deal has a speed of one megabyte (Mb) per second, 20-times faster than dialup, and download usage is unlimited. Another benefit is that there are no set-up costs, unlike some packages that have connection fees of up to £40. Toucan customers must sign for a minimum of 12 months.

The battle of the broadband providers can mean that those considering signing up for the first time, or looking to switch provider, could be forgiven for feeling overwhelmed. The market is fast-moving and many new packages have been launched in recent months.

Sky ruffled feathers last month by launching 'free' broadband, available to customers who have a Sky TV package worth at least £15 a month. As a result, rival providers have tweaked their offerings.

But with more than 100 different broadband deals on the market, most of which are difficult to compare, picking the best company for your needs is tough. And with broadband contracts locking users in for ever-longer periods - up to 18 months - it is even more important to make the right choice.

Find cheaper broadband

How to find a cheaper and better broadband provider

Online comparison sites, such as uSwitch.com and moneysupermarket.com, can help consumers find the deals that best suit them based on internet usage and where they live.

Broadband is attractive simply because it is much faster than a traditional dial-up internet connection. It works by electronically splitting a phone line so it is possible to use the phone and be on the internet at the same time.

Customers can choose to keep their BT phone line and pay monthly line rental to BT while receiving their broadband service from another supplier. Some companies, such as Carphone Warehouse, offer phone packages with line rental and broadband, so users do not pay BT.

'Before you start to shop around for broadband it is important to understand your likely internet usage,' says Chris Williams, product manager at uSwitch.com. 'For example, you don't want to pay extra for a high-speed connection and unlimited usage if all you want to do is send a few e-mails and surf the net.

'Conversely, if you underestimate your usage, you could be stung for extra charges if you exceed the provider's monthly limits.'

A light internet user who just wants to e-mail and surf the net, for example to book holidays and shop, would be served adequately with an internet speed of 1Mb per second.

In contrast, internet users who want to download music, photographs and even films may need up to 8Mb. In terms of usage caps, which are calculated monthly, a one Gigabyte (Gb) or 2Gb limit is usually enough for light internet users.

Heavier web users will need higher limits, up to 4Gb, and those wanting to download films and computer games may need up to 20Gb or, ideally, unlimited use.

'Don't just think about your internet usage now, but remember that you may be online and downloading more if you have broadband and a faster connection,' says Aamir Baloch, head of telecoms at online comparison service energyhelpline.com, which is due to launch a broadband search tool next month.

More providers are bundling services - such as phone packages, mobile phones and digital television in the case of Sky.

While this can be beneficial for many consumers, it is important to ensure you are still getting good value.

>> This is Money's broadband finder now offers comaprisons on the best 'free' offers, from the likes of TalkTalk and Sky. Find out more

'Companies such as Sky, Orange and Carphone Warehouse are marketing 'free' broadband, when customers take out another product from their range,' says Baloch at energyhelpline.com. 'This could be attractive for consumers who want these other services, such as Sky TV or a mobile phone, but it can be difficult to untangle the bundle if, for example, you want to switch your phone or digital TV provider, but not the broadband service, at a later date.'

Sarah McKenzie-Jones (pictured), 34, a computer programmer from Bromley, south-east London, has switched her BT phone service and broadband to Carphone Warehouse to take advantage of cut-price international calls as well as cheaper broadband.

Sarah, who lives with husband Peter, 32, and their 14-month-old son Daniel, regularly phones family in her native New Zealand and says it was important to them to find the best all-in phone and broadband package.

'Peter and I both work in IT and we regularly work from home,' says Sarah, who is expecting a second child in January. We need a fast internet connection, a high usage cap and cheap phone calls abroad. I shopped around online and found that Carphone's TalkTalk broadband offered the best package for us.'

Sarah and Peter pay £8.99 a month on the Talk3 package, plus £11 a month for their line rental to Carphone. For this they get savings on international calls and free broadband with a speed of 8Mb and a download cap of 40Gb. Broadband connection is free.

A major concern for internet and phone users is service standards and the reliability of the internet service provider (ISP) they choose. Only last month, Euro1Net, a small-scale broadband ISP, hit the headlines after BT terminated its service because it had failed to pay its bills.

More than 5,000 Euro1Net customers were suddenly left without a broadband, service - many had paid as much as £200 in advance for a two-year internet connection.

Ofcom, the telecoms watchdog, is investigating. Those who made their payments by credit card should contact their card provider as they might be able to get a refund that way.

The consumer lobby group Which? has conducted a survey into the best and worst ISPs. To view this you must subscribe on the website at which.co.uk, though there is a 30-day free trial offer at the moment.

Other free-to-use sources of information include the websites whichisp.com and ispreview.co.uk. Both list directories of providers and host forums, where users can discuss any problems they have encountered. This is particularly useful to gauge whether providers' service levels are up to scratch.