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From Mail Online (Sunday 15 February 2009)
Every household in Britain to have broadband internet access within Three years - that is the ambitious aim of the Government. But before you get connected you must find the best internet service provider - and that means getting to grips with confusing deals, contracts and bundled packages that may include phone and television offers.
Broadband is different from old-style dial-up internet access because it allows more information to be passed more quickly down the phone line using a modem.
As well as surfing the internet more easily, it allows faster downloads of photographs and other files that friends and family might email, for example.
You can also download music, television programmes and films far quicker. And you have the bonus of being able to receive phone calls at the same time as being online.
But broadband deals can be confusing and depend on where you live, the speed of access you need, how much you intend to use the internet at home, whether you want to lock yourself into a long-term contract, or take advantage of discounts on shared phone and television deals.
Research suggests that despite widespread choice and intense competition, millions of internet users do not bother to shop around or switch when their contracts with internet service providers (ISPs) come to an end.
But this apathy means they often miss out on hundreds of pounds worth of savings each year. Online comparison services can help guide internet users through the options.
Competition is fierce for high-speed broadband, with The Carphone Warehouse offering up to 8Mb (megabit) per second broadband for only £6.49 a month. The 8Mbps is usually more than enough for typical home internet usage, such as email, web surfing, downloading music and storing photographs. In reality, few homes can actually get an internet download speed of 8Mbps, even though this is what the ISP might claim, but experts say that speeds of between 2Mbps and 4Mbps are usually enough. Test your broadband speed here.
Carphone's deal means you must also take its phone package, but this includes free calls to UK landlines in the evenings and at weekends, making it one of the most popular broadband packages, with almost Three million customers and an eight per cent share of the market, according to telecoms regulator Ofcom.
AOL offers 8Mbps broadband from £4.99 a month for the first Three months followed by £14.99 a month as standard. o2 (now Sky) broadband starts from £7.34 a month if you have an o2 (now Sky) broadband mobile phone contract, or £12.23 a month for non-mobile customers, while PlusNet charges from £9.75 a month.
Consumers must still pay monthly line rental to BT of £11.50 (rising to £12.50 from April, or £11.25 if you pay by direct debit) and most of these deals must be taken for a minimum 12-month contract term.
With such good value deals on offer there is no reason to stick with expensive broadband providers. Liam Reese, 34, and fiancee Amanda McCutcheon, 31, a PA in a bank, from Surbiton, south-west London, have just switched from BT to PlusNet, bringing their monthly bills down from £17.99 to £9.75.
Liam was also attracted to the PlusNet deal because it offers free installation and a free wireless router, which enables him to use his laptop anywhere in the house away from the modem. The savings could be more than £100 a year. Customers who do not sign up to the 12-month contract but want a one-month rolling contract must pay a £40 installation fee. AOL and o2 (now Sky) broadband do not charge for installation, but other ISPs do, including The Carphone Warehouse, which has a fee of £29.99.
'We came to the end of the BT contract and I just felt we were paying too much,' says Liam, who was recently made redundant from his job in recruitment. 'The internet has made it easy to compare deals. The PlusNet offer appealed because of the competitive monthly price and the add-ons, such as the wireless router. There is no reason to stay loyal to an ISP. It's simple to switch. If I see better value when my next 12-month contract ends I will move again.'
Bundling
Bundling your TV, landline phone and broadband with one single provider can result in big savings. A survey of 2,000 households by comparison website moneysupermarket.com found that more than two thirds do not bundle phone and broadband services. As a result they are spending at least £20 a month more than they should be.
That said, experts warn consumers not to be lured by free gifts and perks that might look good at first sight, but in reality offer little value or savings.
James Parker at moneysupermarket. com warns: 'Look out for any hidden charges with bundled deals, particularly cancellation fees that can be steep.
'Always shop around and don't be afraid to haggle on price. Your existing provider may be prepared to reward you for loyalty if you threaten to switch elsewhere. And finally, make sure your usage matches your contract. There is no point paying over the odds for unlimited internet use or landline calls, for example, if you are not going to use them.'
Sky and Virgin both offer competitive bundles that provide digital TV, landline phone and broadband for a single monthly fee. Sky charges from £25.50 a month plus a £30 set-up fee and customers get all Freeview channels as well as a range of additional Sky channels, free evening and weekend calls to landlines and 2Mbps broadband. Customers must pay BT line rental on top.
Virgin's service costs from just £24 a month and gives customers Freeview digital TV, unlimited weekend calls to UK landlines (including line rental with Virgin) and up to 10Mbps broadband and a free wireless router.
Martin White, 37, a web developer from Chester, and wife Louise, 34, a primary school teacher, have switched their broadband and phone bundle from BT to TalkTalk with The Carphone Warehouse. It is the first time the couple, who have two young daughters, Jamie, 5, and Caitlin, 4, have switched their service, but they are pleased with the saving of £30 a month.
'I was aware there was a lot of competition around and that prices had come down,' says Martin. 'All the media coverage on the credit crunch has focused our minds on making household savings. When our BT contract ended, I decided it was time to bag a better deal.'
Martin and Louise had to pay a £29.99 set-up fee to The Carphone Warehouse. The monthly charge is £16.99, which includes Carphone's £10.50 line rental, which is cheaper than BT's, and they received a free wireless router.
'Having the broadband access and free landline phone package in one bundle suits our needs and saves us money,' says Martin.
No-contract deals
Many consumers do not like the idea of being tied into a year-long contract or longer with an ISP, particularly as service standards are often a problem.
Online message boards are full of complaints and horror stories about customer service from the major players.
AOL, for example, competes well on price but performs poorly on customer service, according to consumer group Which? Supanet, Orange and Bulldog are also highlighted as 'don't buys', based on service.
Which? has compiled a review of the best and worst that the broadband market has to offer in terms of service.
Matt Bath, technology editor at Which?, says that it is often smaller providers, such as Zen and Be, that stand out for excellent customer service.
The cheapest broadband deals without contract are on offer from PlusNet at £9.75 a month with a £40 installation fee, AOL at £4.99 for the first Three months rising to £14.99 a month with no set-up fee and Direct Save at £9.74 a month with a £29.95 set-up charge.
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