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No contract broadband
If you've been let down by a previous provider, or don't like the idea of committing to a 12, 18 or even 24 month contract, there is another way. Some suppliers do offer broadband without a minimum contract term, or with only very short three month commitments - perfect for anyone who doesn’t want to be tied to the same provider for the next year, at least.
While this is the perfect solution for some people, no contract broadband packages are not without their pitfalls and there are some things that you’ll have to keep an eye out for.
The majority of providers lease their broadband lines from BT (www.BT.com) and have to pay BT to connect you. When you sign a lengthy contract, you’ll often be connected for free, because your ISP knows that it will recoup the money through your subscription over the course of your contract. But if you take out a contract-free package and only stay with the company for one or two months, it won’t make its money back. This is why you have to make sure you read the small print and be prepared for any number of hidden charges and fees.
Upfront charges
Some ISPs that offer no contract broadband packages will charge an upfront fee when you join. This covers the cost that they pay BT for your connection, and might be better than being lumped with it when you want to cancel, and times might be a little harder.
£47 and customers choosing a monthly contract also have to pay £29.99 for a modem
Subscription costs start from £14.99 a month for an up to 8Mb connection with a 2GB download limit on Home Broadband Option 1, up to £29.99 for the top 40GB allowance on Home Broadband Option 4. For the same prices you can get unlimited downloads with peak-time restrictions from the Evolution Broadband packages
£47 and customers choosing a monthly contract also have to pay £29.99 for a modem
Monthly packages cost from £9.99 for the Option 1 with an up to 8Mb connection but only a 1GB download limit, going up to £29.99 for the top 40GB allowance on the Option 4 package
A single “no nonsense” package for £16.95 a month for an up to 8Mb connection with a 20GB limit at peak times (6pm - midnight) then unlimited downloads at all other times (fair usage applies). You also get free UK calls all day, every day
Cancellation fees
More tempting to the naïve consumer are those broadband packages that are advertised as having no contract, and no set-up or connection fee. But more often than not, these packages will charge a cancellation fee if you cancel within the first 12 months, even if you’re on a month-by-month contract.
£47 for first time broadband customers if you leave within the first 12 months or just £12.93 if you migrated to EFH from another provider
With a choice of five different broadband packages, prices start from £13.99 for the Choice 1GB package, offering an up to 8Mb connection and 1GB of downloads, up to £24.99 for the Choice 30GB package with an 8Mb connection and 30GB of downloads
£58.75 for first time broadband customers if you leave within the first 12 months or just £17.63 if you migrated to Namesco from another provider
Monthly package costs from £10.95 a month for the Bronze package offering download speeds of up to 512Kb and a download limit of 1GB, up to £24.95 for the top Platinum+ package with an 8Mb connection and 1GB allowance (though additional usage can be purchased on all packages)
Although all Virgin.net broadband packages come with a 12 month contract, you can pay a £50 exit fee to be released before your year is up
Virgin non-cable packages start from £14.99 a month for the Plan Three package, offering an unlimited 1Mb connection, or £17.99 a month for the Plan Two package with an unlimited 8Mb connection (fair usage applies on both packages)
Three month contracts
If you know that you definitely don’t want your broadband for a whole year, but will need it for at least three months, then Be Broadband offers fast, reliable broadband on three-month contracts.
You have to pay a £24 set-up fee but there’s no cancellation fee. However, you do have to give three month’s notice before leaving
The Be Unlimited package costs £18 a month for an unlimited up to 24Mb connection, uploads of up to 1.3Mb and a free static IP address. Be Pro package costs £22 a month for an unlimited up to 24Mb connection, uploads of up to 2.5Mb and a free static IP address (fair usage applies to both packages)
While these packages are a little pricey, you will get the UK’s fastest broadband service, with speeds of up to 24Mb, a free static IP address and much faster uploads than with a standard connection - perfect for gamers or home office users.
Monthly vs Yearly contracts
So what is the best option for you? You can find very competitive no contract broadband packages if you shop around, and if you’re sure that you will have to cancel within 12 months, then even paying the cancellation fee could be much cheaper than paying the remainder of your 12 month term - which is what you’ll have to do if you sign a standard 12 month contract.
If you definitely need a no contract package, then you should consider paying the fees upfront with Direct Save Telecom, Eclipse or Plusnet so that costs of up to £50 aren’t sprung on you upon moving house, or at hard times. Plusnet also offers the cheapest starting price per month for a contract-free package. Alternatively, if you already have a broadband connection, migrating to a monthly contract could cut your exit fee down to as little as just £12.93.
Bear in mind that its not just one month or one year contracts that are available now; 18 and even 24 month contracts are now available too. These are often cheaper per month - and many offer freebies such as laptops of games consoles to tempt you, but leave you stuck if you’re not happy with the service, no longer need it, or find a better deal elsewhere.
You can compare over 100 broadband deals on BroadbandChoices so use our Broadband Comparison Calculator to compare the costs of different packages, and find the best deal for you.
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