Broadband Guide

Truth about 'no contract' broadband

Updated: Wednesday 04 January, 2012

By Editorial - news@consumerchoices.co.uk

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 flexible 3 month plans - perfect if you don’t want to be tied to the same provider for too long. However, no contract broadband packages are not without their pitfalls and there are some things that you’ll have to keep an eye out for.

No contract broadband packages

Plusnet Broadband (www.Plus.net) is one of the only broadband providers to offer a genuine "no contract" option. The provider’s two home broadband packages, Value and Extra, come with no contract options, giving you the choice to cancel your broadband with just 10 day’s notice and no penalties - you just pay a £25 connection fee. You can use your own router if you already have one, or simply pay £20 for a wired connection or £40 for a wireless router. If you want to find out more about what customer's think of Plusnet Broadband read the latest Plusnet broadband review.

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 (www.Bethere.co.uk) offers fast, reliable broadband on three month contracts with speeds of up to 24Mb.

Additional fees

The majority of providers lease their broadband lines from BT Broadband (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

If you go for a "no contract" package, your broadband provider is likely to charge an upfront fee, also known as an activation or connection 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.

The following best buy table shows packages with a free connection (and no upfront fees). However, as they're only available on long term contracts, this may not be what you're looking for.

Check our guide to broadband with a free connection for more information on this topic.

Cancellation fees

More tempting to the unwitting 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 leave within the first 12 months, even if you’re on a month-by-month contract.

Mobile broadband

Mobile broadband providers such as O2 Mobile Broadband (www.O2.co.uk), 3 Broadband (www.Three.co.uk), T-Mobile Broadband (www.T-Mobile.co.uk), Orange Mobile Broadband (www.Orange.co.uk), Virgin Media Mobile Broadband (www.Virginmedia.com) and Vodafone Broadband (www.Vodafone.co.uk) all offer rolling one-month or pay-as-you-go packages without long contracts.

You’ll be able to take your broadband with you no matter where you go and if you can stay within your download limits and use mobile broadband to replace your home connection you’ll be able to save over £160 a year on line rental alone.

However, you will need to keep an eye on your downloads as mobile broadband packages have far lower monthly allowances than traditional broadband packages and out of bundle costs can be very high.

Monthly vs yearly contracts

So what’s 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 settling the remainder of your 12, 18 or 24 month term - which is what you’ll have to do if you sign a standard contract.

Bear in mind that it's not just one month or one year contracts that are available; 18 and even 24 month contracts are now available too. These are sometimes cheaper per month - and many offer freebies such as laptops or inclusive line rental 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.co.uk so use our broadband comparison calculator to compare the costs of different packages, and find the best deal for you.

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