February 05 2008

Broadband is ubiquitous

Broadband is faster, cheaper and more popular than ever, so there’s no longer an excuse for not adding rich media to your site.

According to a recent survey of broadband providers by price comparison site uSwitch, broadband is now cheaper, faster and more widespread than ever before. uSwitch found that there were now nearly 15 million households spending over £3 billion on broadband.

uSwitch reveals that average broadband prices have dropped 36% over the last 4 years to their lowest level, while speeds are faster than ever. uSwitch has compared the average price for the most popular speed in January 2004 against the same for 2008. Four years ago, customers could expect to pay an average of £27 a month for broadband with a standard speed of just 0.5Mb. Today, the majority have signed up to a headline speed of 8Mb costing an average of £17 a month. This is a saving of £120 a year for a service 16 times as fast.

The broadband market is dominated by the same key players that first piped high speed internet into homes four years ago, but while some companies have slashed prices by as much as 46%, others have dropped their charges by just 29%.

Steve Weller, Head of Communications Services, at uSwitch.com comments: “With broadband both the cheapest and the fastest it’s ever been, our love affair with the internet is set to reach great heights this year. We predict that prices will stabilise, but customers will be offered more for their money, with companies continuing to increase speeds. Broadband providers such as Be*, O2 and Sky already offer speeds above the 8Mb “standard”. Be* offers broadband packages with speeds up to 24Mb for a monthly cost of £18, only 81p more expensive than the average price of 8Mb broadband.”

In a related piece of news it seems that it’s not all rosy in the world of price comparison sites. SimplySwitch, the price comparison website owned by Daily Mail and General Trust, is to shut down after failing to measure up to performance targets set by its new owner.

The company, which allows consumers to compare available products in energy, home phone, mobile and broadband and then change suppliers, has blamed its poor performance on a "significant reduction in the price comparison market for switching energy over the past 12 months".

All of SimplySwitch's 65 employees are at risk of redundancy but a final decision is not expected until February 20.

by Marcus Austin (Web Editor)