| Author | 4Ps--Marketing |
| Title | Cost of broadband falls over 40% in four years-00-3864 |
| Category | Communication Training |
| Article |
In September 2005 a process known as “local loop unbundling” (LLU) started in the UK. The process, which was instigated by the regulator, required BT to allow competing companies to install their own equipment in BT telephone exchanges. In turn this means that they do not have to sell-on BT’s wholesale broadband service and can therefore offer very competitive prices. The result has been nothing short of extraordinary. There are now over 6 million “unbundled” phone lines with about 30 different companies providing broadband services to households and businesses. As Ofcom Chief Executive Ed Richards notes: "In just four years, unbundling has gone from a flicker on the dial to a major competitive force in telecoms. This has delivered the dual benefits of driving up broadband take-up and driving down prices." The downward pressure on broadband prices has been enormous. In September 2005, the average cost of broadband of a copper home phone line was £23.30 per month, but today it is only £13.61 for an equivalent service. This is a whopping 42% reduction and directly results from the competition unleashed by the LLU process. TalkTalk was one of the first companies to take advantage of LLU and sent shockwaves through the market with their “free” broadband offer (when you bought a home phone call package) in April 2006. Since then, a host of companies have sharpened their pencils, to drive down the cost of their broadband services. As a result you can now buy broadband and phone bundles starting from as little as £6 per month (excluding line rental). The digital TV providers have got in on the act too. Sky for example offers free broadband for Sky TV subscribers who also take a Sky Talk calls plan. Recent research from broadband and digital TV comparison service simplifydigital.co.uk shows that many consumers are still failing to take advantage of the potential savings. Over 70% of people have not switched their broadband, digital TV or home phone services in the last year and over one third of us have not even bothered to research the market in the last 12 months. The research shows that those who bundle their digital TV, broadband and home phone services from a single provider save an average of £360 per year. So called “triple play” packages start from around £20 per month for all three services. Sky, Virgin Media, BT and Tiscali all have great value triple play bundles. Virgin Media’s entry level bundle is just £14 per month (excluding line rental) and Sky’s is just £16.50 (excluding line rental). |
| About the Author | Simplifydigital.co.uk offers a unique service in the UK, as an Ofcom accredited impartial retailer they provide a free consultation for anyone looking to save money and http://www.simplifydigital.co.uk/ and http://www.simplifydigital.co.uk/. |