Broadband prices tumble despite credit crunch

Broadband is the only household utility bill to buck the trend of rising household bills in the wake of the credit crunch, according to broadband comparison...

Broadband is the only household utility bill to buck the trend of rising household bills in the wake of the credit crunch, according to broadband comparison site Top 10 Broadband.

"Broadband bills have plummeted by more than 60% in the past 18 months, while gas and electricity have risen by 15% and are set to rise further by the end of the year," said Jessica McArdle, a spokeswoman for Top 10 Broadband.

McArdle said, "Rampant competition among ISPs is driving the broadband market to cut the cost and raise the speed of home broadband packages.

"If you signed an 18 month contract in January 2007, the average deal would have cost £13.73 a month, if you were to switch from this package now you would be looking at offers starting at just £3.25 a month. The opportunity for savings is obvious and people need to consider switching broadband provider if they are over-paying."

As well as cheap home broadband, another alternative and potential cost saving for some households is mobile broadband, she said.

Despite being more expensive per GB of download, it may work out cheaper than home broadband as it removes the need to have BT line rental at home.

Starting at just £10 a month, "it ticks all the boxes during this credit crunch", McArdle said. The saving of £131 a year in landline charges makes this a particularly enticing prospect as belts tighten.

"Mobile broadband was once considered a luxury to supplement one's broadband use outside of the house. However, like home broadband, mobile broadband prices have dropped dramatically in 2008. Its speeds have risen and its download allowances have become more encompassing," she said.

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