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There is good news for Britain’s internet users after communications regulator Ofcom revealed proposals for broadband and phone prices to fall every year between now and 2014. Currently, broadband prices work in a complicated system – in some cases, lines are unbundled from BT’s network, while in others lines are simply rented from BT. In some cases BT provides phone services while another company provides broadband. However, under Ofcom’s proposals the wholesale price should be lowered by up to the retail price index level of inflation minus 6.1 per cent – which could mean falls in line rental prices by up to three per cent a year. Meanwhile, unbundled lines could fall by the retail price index level of inflation minus 4.2 per cent. Currently they cost £89.10 and £103.68 a year, respectively. Real savings According to Ofcom, the proposed prices should lead to real term reductions for consumers because the savings should be passed on by the providers. So far, internet service providers have welcomed the move with PlusNet suggesting it will be able to make a competitive market “even more dynamic”. However, BT has been critical of the proposals, questioning some of the assumptions used by Ofcom and suggesting it is critical that BT is allowed to earn a fair rate of return for its investment in copper and fibre based broadband services. A further statement is expected to be published by Ofcom in the autumn after further consultation. Switching tips Consumers that don’t want to wait to start saving on their broadband are advised to shop around for cheaper deals. There are several broadband comparison websites that will compare the rates of numerous providers in a selected area to help consumers find a more affordable deal. The key when switching, however, is to think beyond the monthly charge alone. Internet subscribers should also look into broadband speeds and download capacities to ensure they are receiving value for money. The switching process itself should be straightforward as long as the consumer collects their migration authorisation code (Mac) from their existing provider and passes it on to the new company to ensure there is no loss in service. In addition it is worth looking for a broadband voucher code before making the switch, as it could offer additional savings. The Article is written by www.5hop5.ie providing Voucher Code. Visit www.5hop5.ie for more information on www.5hop5.ie Products & Services.
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