Broadband News

Broadband to average £10 a month by 2011

(18-04-07) - UK consumers will spend as little as £10 a month on broadband in four years’ time, according to a new study by the Centre for Telecoms Research (CTR).

The new rock-bottom prices will be driven by increased competition by ISPs.

The report, UK Internet Services Market 2002-2011, predicts that consumers will continue to migrate towards tariffs with faster download speeds, which are typically more expensive. But CTR also expects that ISPs will charge less and less for broadband, phone and TV ‘bundles’ (where customers pay a lower rate to buy two or three products from the same supplier). This will drive down the price of broadband access, within bundle deals and outside of them.

Raj Modi, Research Director at CTR, says: “Competition between ISPs is likely to intensify over the next five years, and this will result in many operators supplying high-speed broadband as a loss leader or as part of a bundled package in hope of cross-selling other services to the customer.”

The report also suggests that around 85% of UK households with a PC will use broadband by 2011.

Chris Eagle, Commercial Manager at broadbandchoices.co.uk, comments: “This is especially good news for the high end broadband users – those people who don’t need a particularly fast connection are already paying low end prices - however there is a lot of scope to reduce the prices of 24Mb and high end download limit packages.”