Farrpoint, a technical consultancy company, has estimated that broadband prices in the UK could rise over 30% in the coming years.
In the last year, with high inflation rates in the economy, broadband prices have already gone up 10%. The company estimates that this price growth is not slowing down and is predicted to be 11% for 2022 and as high as 8% in 2023.
Currently, total connectivity costs (including broadband, phone and mobile) on average are £1,123 and are expected to rise up to £1,508 in 2027 and potentially even higher. This is an increasing upward trend after already a few years of stark price increases. In 2020, the average cost for a year was still below £1,000.
Farrpoint advises against ditching your broadband or phone deal
With the increasing costs coming on top of other severely increasing costs such as rising energy bills, some households contemplate ditching their mobile or broadband plan altogether to save some vital money to spend on other areas of their lives. After all, internet connectivity would come behind having a roof over your head, food to eat and a warm house in the winter. However, it could prove to be a costly mistake in the long run to opt for some short-term savings. Reinstalling a plan in the future would cost extra money, the deals that you would get will definitely be more expensive and in times like these, and reliable broadband and mobile connection are more vital than ever.
Especially with the winter coming and the potential of yet another covid wave could imply remote working and remote education again for many UK households, which would then provide huge demands on broadband and mobile phone connectivity for everyone. Staying in touch with friends and relatives nowadays almost always involves the use of the internet. Another potentially overlooked benefit of having broadband and/or mobile internet connection is how the internet can actually save you money. Cheap flight tickets, deal discounts, switching energy providers or online shopping, each of these are only possible on the internet or way more convenient to perform on the internet than via phone or in person. The Internet Association estimates that using the internet for the aforementioned services could have an economic impact of £780 on a yearly basis.
What can you do to battle the rising prices?
There are several things you can do to prevent your bills from rising extraordinarily. The most common and easiest way is to shop around. With some intelligent insights in your phone and broadband usage statistics, you can shop around at different providers, compare all the prices for different plans available and potentially find a plan that is more suited for your personal use of broadband that saves you money as well.
Research shows that many customers switching from one of the big four providers (BT, Sky, TalkTalk and Virgin Media) could save households up to £200 pounds on their broadband deal. Also, many households could save money by looking up special package deals for broadband, TV and phone deals to obtain a better price with a bundle.
Some households could also be eligible for the recently introduced social tariffs by some of the providers. UK ISP Air Broadband for example recently announced the introduction of a low-cost social tariff that would only cost £20 a month.