Low-cost broadband defies credit crunch

Broadband is the only household utility bill to buck the trend of rising household bills in the wake of the credit crunch, according to broadband comparison site Top 10 Broadband.

ìBroadband bills have plummeted by over 60% in the past 18 months while gas and electricity have risen by 15% and are set to rise further by the end of the yearî says Jessica McArdle, a spokesperson for Top 10 Broadband.

McArdle continues ìRampant competition among ISPs is driving the broadband market to cut the cost and raise the speed of home broadband packages. If you signed an 18 month contract in January 2007, the average deal would have cost 13.73 a month, if you were to switch from this package now you would be looking at offers starting at just 3.25 a month ñ the opportunity for savings is obvious and people need to consider switching broadband provider if they are over-paying.

ìAs well as cheap home broadband, another alternative and potential cost saving for some households is mobile broadband; which despite being more expensive per Gb of download, may work out cheaper than home broadband as it removes the need to have BT line rental at home. Starting at just 10 a month it ticks all the boxes during this credit crunch. The saving of 131 a year in landline charges makes this a particularly enticing prospect as belts tighten.

ìMobile broadband was once considered a luxury to supplement oneís broadband use outside of the house. However, like home broadband, mobile broadband prices have dropped dramatically in 2008, its speeds have risen and its download allowances have become more encompassing.

ìAs well as the importance of access costs, the internet itself has become the primary source of information for ëBroadband Britainí as households look to spend less on goods and services. With the credit crunch in full swing, people are comparing prices online like never before.

ìAdditionally, with technological innovations such as YouTube and the BBCís iPlayer superseding traditional forms of home entertainment, broadband has become a more essential and affordable utility and people are not willing to give it up despite increasing financial constraints.

ìWith talk of a recession on the horizon, there is no room for complacency and consumers must reconsider their expenditures and make savings where they can. Savvy households are taking advantage of record low prices for broadband and are switching in increasing numbers.