Even Better Broadband!

Broadband has developed into such a competitive market; we should be able to enjoy even better deals.

There are now more than sixteen million broadband connections in the UK. That's a lot of customers to keep happy!

Fortunately, the broadband market is operating so effectively these days, that Ofcom -- the communications industry watchdog -- will stop regulating it. 

Ofcom plans to deregulate almost 70% of the wholesale broadband market which has strong competition. This includes areas up and down the country which are:

• Served by four or more wholesale broadband providers and,
• Where no one single provider has significantly greater control of the market than any of the others.

(The current regulations will still apply in areas which don't meet these two conditions.)

But what does this mean for you?

Healthy competition means broadband providers will have to compete fiercely with each other to win your business. This should lead to more innovation, better services and lower costs. So -- if you haven't already -- there's never been a better time to think about switching.

Switching your broadband

Many of you have already taken the opportunity to upgrade your service by switching providers. Here's a quick five-step guide on how to do it:

Check your contract

If you're still within your original contract period there could be a hefty penalty for switching early. If you find a cheap enough deal somewhere else, the savings you make could outweigh the charge.  

If you're having real problems with your broadband service, you may have grounds for cancelling the contract early. Perhaps your provider has fallen short of your service agreement. For example, your download speed may be much lower than it should be. Try this speed test to see if you're getting what you've paid for. If not, use it to your advantage.

You may just be able to sidestep the penalty. If there's no way to escape early without a heavy charge, you may be forced to stay put until the contract periods ends. But as soon as it does, get switching!

Find a better deal

Broadband comparison websites are a great resource for comparing different broadband deals. And with so much on offer these days you could probably do with the extra help. You could try a website such as http://www.broadbandchoices.co.uk/. Your search can be tailor-made according to how you want to use your broadband, with the download limit and connection speed that you need.

Or try to renegotiate your current package

Before you jump ship, it may be worth checking whether your current provider can offer you anything better, especially if you have had the same package for some time. The cost of broadband has dropped significantly in the last couple of years, so you could keep the same deal but persuade your provider to trim a few pounds off the monthly price to keep your business.

Think about a broadband bundle or mobile broadband

Last year was the year broadband bundles started to become really popular. As I explained in Save £240 A Year With A Broadband Bundle, combining your TV, phone and broadband services into one package or `bundle' can be a far cheaper option than using a separate provider for each.

This year is looks like it's the turn of mobile broadband to steal the limelight. And it's pretty simple too. A provider will supply you with a USB modem or dongle. All you need to do is plug it into your PC to connect to the internet.

Better still, you won't need to pay for line rental as mobile broadband connects to the internet wirelessly using the 3G network.* This could save you around £126 a year (with BT line rental at £10.50 a month). And with prices starting from just £10 a month it's an affordable way to surf the net.

Look at costs and service

Before you switch, check all the costs for your new deal including monthly charges, connection fees and line rental. If your new deal has a download limit, will you be charged for going over it? Some providers may restrict your speed limit during busy periods if you regularly exceed your allowance.

Of course, you want good value but good customer service is important too. Do your research and read the reviews before making your choice. If you don't want to be tied down to one particular provider, you could get a broadband package with no contract.

The broadband market may be highly competitive in most parts of the country, but that doesn't mean it's perfect. There are still major problems with broadband connections that are a lot slower than the advertised speeds. Ofcom is monitoring the issue and has devised a voluntary code of practice to encourage greater transparency.

In spite of these troubles, the future for broadband still looks bright. All you need to do is hunt down the perfect deal.

* The 3G network covers almost 90 per cent of the UK. Coverage should reach 98% with broadband speeds of up to 7.2Mb by 2009.

More: Save £203 A Year With A Dongle