Broadband has become cheaper over the past 10 years, while the service itself has got faster and more reliable, according to various new research. Yet millions of Brits could be paying more than they need to.
Broadband bucks the trend
Broadband comparison website Broadband Genie found that broadband is the only item in its virtual basket of common household expenses to have fallen in price over the past decade. This comes as the weekly shop, energy bills, and the cost of a pint have all risen compared to a decade ago.
New data published by Ofcom in its annual pricing and consumer engagement report supports this, pinpointing areas where millions of phone, broadband and pay-TV customers could save money on their bills.
Out-of-contract customers could save
According to Ofcom's research, average broadband prices fell in real terms last year, particularly for faster services. Across a range of different speeds, prices decreased by an average of 6%. However, 28% of broadband customers were out of contract, and customers who are in contract spend between £7 and £9 a month less than out-of-contract customers on average, meaning that millions could be overpaying.
This difference narrowed significantly last year, but most out-of-contract customers could still save money, Ofcom said. They could do this by simply talking to their current provider and signing up for a new deal.
More choice and competition
There seems to be more choice and increasing competition between established providers and newer rivals. In many cases, customers can now switch to a faster, more reliable full-fibre broadband service and pay the same, or even less than they currently do for a copper or part-fibre connection.
Newer firms often offer lower prices to attract customers, while larger providers' prices are falling toward those of the new challenger firms. Last year, 18% of households switched internet providers, up from 14% in 2023.
The service also seems to have improved. The telecoms watchdog found that around eight in 10 UK homes now have access to faster, more reliable full-fibre broadband, following the rollout of new networks by Openreach, Virgin Media O2 and a range of newer challenger firms, often referred to as “altnets”.
Ofcom also found average prices for SIM-only mobile plans with unlimited data fell by 8% in real terms, with some SIM-only deals now available for less than £5 a month.
