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How cheap do you want your broadband?
Monday 03 June 2013 22:22:56 by Andrew Ferguson

Everyone is used to the complicated special offers that abound for broadband and Direct Save Telecom are attempting to make life simpler for those looking for the cheapest unlimited broadband (subject to fair use policy). After the success of their previous £2.49 per month deal, they are now launching a £1.95 broadband service using ADSL2+ in low cost areas.

To get the £1.95 deal you need to live in their low cost area and also take voice line rental from Direct Save Telecom at a cost of £14.75 (reduces to £9.95 per month if you pay 12 months up front). The downsides are that the service involves a 24 month contract and a £24.95 start-up fee.

Many will wonder how a provider can offer broadband for so little and partly this is because of the ability for revenue from chargeable calls to subsidise the broadband costs and the low cost of unbundled broadband in the UK.

Outside of the low cost area the price is £14.95 per month for the broadband element, this out of area service is also only ADSL based (up to 8 Mbps download speeds) If there are those who don't want the lengthy 24 month contract a simple 28 day agreement is available for £16.95 per month (£6 extra in non-LLU areas).

Comments

Posted by 21again over 4 years ago
"Cheap" broadband will always be available in one form or another for a lot of the urban masses.
I'm paying around a fiver a month for 5GB usage with a 3Meg forced sync on a long connection to a very rural 20CN exchange so can't complain about cost only the lack of connection speed in the 21st century.
Posted by zyborg47 over 4 years ago
something got to give at that price, I thought Talk Talk was too cheap and I would say it is customer service.

what network do direct save use?
Posted by GMAN99 over 4 years ago
Its things like this that stifle investment in the UK in terms of broadband.

Talktalk and now Directsave, should this become very popular and attracts masses other ISP's will look to reduce their prices to compete, meaning less revenue, meaning less investment
Posted by ian72 over 4 years ago
The problem is that people will pay this price and still expect top notch performance, support and service. People's expectations are wrong - if they want quality you need to pay for it - by all means go for the cheapest but expect it to be lower quality.
Posted by rian over 4 years ago
More competition is a good news
Posted by zhango over 4 years ago
If the revenue from chargeable calls are subsidising the bb how do they make money if you take the Anytime call service at £4.95pm as they still have to pay BT for that?
I currently pay BT £5.15pm for their Anytime call service.
Posted by fibrebunny over 4 years ago
The internet deal comes with evening and weekend calls free not anytime. I assume they hope people will go over the hour and make other chargeable calls such as mobile and so on.

Interestingly they claim to have UK support and customer services. Which is something of a surprise at that price.
Posted by GMAN99 over 4 years ago
rian , it is unless it damages the market of course , though they'd have to have huge sign up's before others would change their pricing I expect
Posted by NilSatisOptimum over 4 years ago
I want even cheaper than £1.95 Adsl 2+ broadband service, it would need to be unlimited unrestricted and unfiltered. Around .99p No set up cost and all the above uns. I care for investment as much as a shareholder..
Posted by tommy45 over 4 years ago
Bt and a few other providers charge over the odds for line rental bt being the most expensive, It's getting harder to justify paying them, I hardly ever use the phone for calls, bt should of replaced the copper and ali by now , but they ain't too concerned about shareholders and profits
Posted by tommy45 over 4 years ago
And the giving free sports tv away to their bb customers isn't helping the rest of us, as we are subsidising it and getting nothing back
Posted by WWWombat over 4 years ago
I demand to stop paying my line rental.

When BT disconnect my copper line because I'm no longer renting it from them, I demand they carry my internet data by telepathy. Or carrier pigeon, whichever is faster.

And I demand they do it free. What do they think I am? Made of money?
Posted by chrysalis over 4 years ago
line rental is an obselete practice but the reality has to set in, when the day does come it goes away, the fees will be clawed back some other way, no company will throw away that kind of revenue, especially BT. As for this isp they are defenitly bad for the market and i had never heard of them until news articles started popping up.
Posted by NilSatisOptimum over 4 years ago
I don't know much about telepathy, perhaps its southern thing, however wwwombat, may I recommended a wireless alternative, mine is completely off national network. Many times more expensive,but well worth being with a forward thinking company!
Posted by mdar5 over 4 years ago
The most logical should be for fees to be split up into the three components.
1. A rent/maintenance/service payment for the physical line to your home.
2. Payment for receiving a voice service
3. Payment for receiving a broadband service.

Currently in the UK (1) and (2) are lumped together.

As for low cost ISP's: well we have low cost airlines, and they seem to generate a lot of fury for some who use them.
Posted by WWWombat over 4 years ago
@nils
Each to their own. For me, that's fixed-line broadband, where I expect that I'm going to have to pay something for the line as well as the broadband.

It amazes me how many people think that they can get the service without also paying for the line.

@mdar5 has it right - almost. The current fixed payment definitely pays (1), but only part of (2). If you make any calls, you'll note that there are additional charges that get added. However, the ability to receive calls is a part of the line rental.
Posted by JNeuhoff over 4 years ago
The issue is not how much to pay for a broadband, but rather, the lack of proper broadband services in the first place, e.g. no genuine fibre-optic services in most places. We'd be happy to pay a reasonable amount if a telecom company could provide us the needed services. As it stands, none can at the moment we are.
Posted by GMAN99 over 4 years ago
I suppose it depends what you consider a reasonable amount for a genuine fibre-optic service
Posted by NilSatisOptimum over 4 years ago
16Mbps up/down unlimited usage fibre fed and not openreach, £42.00 per month could go upto 100mbps. Mobile £27.00 per month, No national disgrace network nonsense fee's for me, even at £1.95 broadband+++
Posted by sparky_132 over 4 years ago
With a little haggling and being on O2 mobile customer (£5 discount), I currently get both home phone and ADSL broadband from O2 for £15.25 (required 12 month contract). I'm not expecting that price to stay the same once I move to Sky. For that price I've had no complaints with O2.
Posted by andrew (Favicon staff member) over 3 years ago
Spamming with referal links is not welcomed in news comments
Posted by shortie1205 over 3 years ago
I was also with O2 and rang to get MAC code and was put through to a dedicated SKY team. As they are seeing any O2 customers leave rather than transfer to SKY they are offering free broadband on a 12 month contract. It only has weekend calls, and is unlimited. Pay line rental up front for a year is £119. That is very cheap broadband...
Posted by francisuk20 over 3 years ago
Well dont forget ISP have to pay for Peers to get to USA, EU so ISP need to make money to keep up with Peers :)
Posted by jock_1944 over 3 years ago
I get unlimited broadband+anytime calls+line rental all for £21.15p per month. Good customer service and no problems I'm happy with what I get, unless someone can tell me where it is better and cheaper.
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