Should you expect your broadband prices to increase over the coming year? What sort of increases have we seen already? Read on to discover everything you need to know about the current state of broadband prices so that you can make sure that you end up on the most cost-efficient plan for your requirements.
1. How has the price of broadband changed in the last 12 months?
Broadband prices increase on a yearly basis. This means that millions of households around the country are facing higher broadband bills.
Below, you can see, the average prices for broadband (as a standalone and bundled service) for the past six years:
Last year, we saw that a number of providers increased their prices, and they did not stop at the rate of inflation. We saw TalkTalk apply the CPI (0.6 percent) and then they added on 3.7 percent. Vodafone, Plusnet, John Lewis Broadband, EE Broadband, and BT all did the same, yet they added on 3.9 percent.
However, you can expect a much bigger price hike this year. The surge in inflation in the UK has meant that we are going to see businesses increase their prices yet again. So, there is no time better than now to consider your options when it comes to your broadband package.
2. What can we expect from the trends in other areas such as gas, electric and other utilities?
If you thought the news regarding broadband was bad, it is only getting worse in other areas. We are sure you have seen the news lately about gas and electricity bills. The energy price cap is set to double in months, which means that people could see their energy bills soar by £693/year. This is a massive price hike, to say the least. Experts have warned that households could see their energy bills increase by as much as 56%. If you want to read more about the energy price gap here is a great article from Martin Lewis.
| CPIH Index (UK, 2015 = 100) | CPIH 12- month rate | CPIH 1- month rate | CPI Index (UK, 2015 =100) | CPI 12- month rate | CPI 1- month rate | OOH Index (UK, 2015 =100) | OOH 12- month rate | ||
| 2020 | Dec | 109.4 | 0.8 | 0.2 | 109.2 | 0.6 | 0.3 | 108.8 | 1.3 |
| 2021 | Jan | 109.3 | 0.9 | -0.1 | 109.0 | 0.7 | -0.2 | 109.0 | 1.3 |
| Feb | 109.4 | 0.7 | 0.1 | 109.1 | 0.4 | 0.1 | 109.1 | 1.4 | |
| Mar | 109.7 | 1.0 | 0.2 | 109.4 | 0.7 | 0.3 | 109.1 | 1.3 | |
| Apr | 110.4 | 1.6 | 0.7 | 110.1 | 1.5 | 0.6 | 109.2 | 1.4 | |
| May | 111.0 | 2.1 | 0.5 | 110.8 | 2.1 | 0.6 | 109.4 | 1.5 | |
| Jun | 111.4 | 2.4 | 0.4 | 111.3 | 2.5 | 0.5 | 109.6 | 1.6 | |
| Jul | 111.4 | 2.1 | 0.0 | 111.3 | 2.0 | 0.0 | 109.8 | 1.6 | |
| Aug | 112.1 | 3.0 | 0.6 | 112.1 | 3.2 | 0.7 | 110.0 | 1.7 | |
| Sep | 112.4 | 2.9 | 0.3 | 112.4 | 3.1 | 0.3 | 110.2 | 1.8 | |
| Oct | 113.4 | 3.8 | 0.9 | 113.6 | 4.2 | 1.1 | 110.5 | 1.9 | |
| Nov | 114.1 | 4.6 | 0.6 | 114.5 | 5.1 | 0.7 | 110.8 | 2.1 | |
| Dec | 114.7 | 4.8 | 0.5 | 115.1 | 5.4 | 0.5 | 111.2 | 2.2 |
3. Which companies have seen the highest increase in broadband prices?
You may be wondering which companies are the worst in terms of price hikes. Well, it can change from year to year, so it is important to keep this in mind. However, we can take a look at the track record in order to get a better understanding. Firstly, we have companies that have all introduced inflation price rises linked to RPI, which was 1.5 per cent, i.e. Virgin Mobile, O2, and ID Mobile.
The worst committers, though, are those who take the CPI and then add on the extra 3.7 or 3.9 percent, as mentioned above. Some of these companies include Three, Vodafone, Plusnet Mobile, EE, and BT Mobile. In recent years, these companies have all added the biggest chunk to their prices.
In additional, most of them do not allow you to cancel the contract without an exit fee.
The CPI rate published in January 2022 is 5.4%
| Company | Total Price increase Announcement for 2022 |
| Vodafone | CPI plus 3.9% = 9.3% increase |
| EE | CPI plus 3.9% = 9.3% increase |
| John Lewis Broadband | CPI plus 3.9% = 9.3% increase |
| BT | CPI plus 3.9% = 9.3% increase |
| Virgin | No official increase % announced, just deadline to cancel for customers and noticiation of increase from 1st Match 2022. |
| Plusnet | CPI plus 3.9% = 9.3% increase |
| Wave Internet | 0% increase in 8 years! |
4. How does the cost of broadband compare to other countries around the world?
You may be wondering how the cost of broadband compares in the UK to other parts of the world. Well, you may be interested to learn that we don’t have one of the five most expensive packages here, but we certainly do not have five of the cheapest either.
In a study that was calculated by Cable, they revealed that five of the most expensive individual broadband packages found around the globe are in Eritrea, Laos, Comoros, Ghana, and Mauritania. This is in order from the most expensive to the cheapest. The expense in these areas comes from a combination of extremely low take-up, warfare, and political climate, and the fact that in most instances the price you have to pay will increase in large part to needing to actually construct a physical line for your property, as there are few in existence at the moment.
On the flip side, the five cheapest packages in the world can be found in Kyrgyzstan, Sri Lanka, Syria, Russian Federation, and Moldova. This is in order from the cheapest downward. Of course, when something is cheap, it often means that it comes at a cost of quality. Limited availability and slow speeds are to be expected in Sri Lanka, Syria, and Kyrgyzstan. However, Moldova and Russia do not fall into this category. They offer high levels of quality at an affordable price.
5. Which type of broadband costs the most moving into 2022?
There are a lot of different factors that are going to determine the cost of broadband. Not only does this include the brand you choose but it also incorporates your location and the type of broadband you select. For example, whether you go for FTTP or fibre, or you choose a fixed-line.
FTTC (Fibre to the Cabinet), ASDL, Cable and FTTP broadband are most likely to see price increases, as they are used primarily by the large corporations like BT & VIRGIN.
Rural Line-of-sight Broadband
The benefit on living in rural areas is that the best internet providers are often local internet suppliers, due to the nature of the technology. Beaming your rural broadband from local masts, via microwave signals ensures the best connections. The benefit of using smaller companies, is price rises are much less likely.
6. Can I be free of my contract if the price increases?
There is no simple ‘yes’ or ‘no’ answer to this question, unfortunately. It depends on a number of different factors. If the increase is the standard yearly price hike, you may find that you cannot leave your contract without paying a fee. However, if your broadband contract increases your contract price mid-contract and the increase is of material detriment, for instance, it is bigger than the rate of PRI, you can leave your contract without a penalty.
This is something that has been enforced by Ofcom. Therefore, if your provider tries to make you stay in your contract, you will be able to point them in direction of the Ofcom rules and regulations.
Here are a few links that may help:
Cancel my Virgin Media Contract: www.virginmedia.com/help/virgin-media-how-to-cancel
Cancel my BT Contract: www.bt.com/help/account-and-billing/manage-account/how-to-change-or-cancel-a-bt-phone–tv-or-broadband-package
Cancel my Plusnet Contract: www.plus.net/help/legal/cancellation-policy/
Cancel by Talk Talk Contract: www.community.talktalk.co.uk/t5/Articles/Cancel-your-TalkTalk-service/ta-p/2204737
Cancel by John Lewis Broadband: www.johnlewisbroadband.com/support/customer-service/cancelling.html
Cancel my Vodaphone contract: www.support.vodafone.co.uk/Broadband/Cancellations/1464003162/I-want-to-cancel-my-home-broadband-service.htm
7. How do I avoid price increases in my broadband package?
Rising broadband prices are not something you simply need to accept. There are other options at your disposal. For example, at Wave Internet, our prices have not increased in recent years, so you can have complete peace of mind. Customer service is of paramount importance as well, so you can be sure that we will always be there for you if you need assistance or you are having any trouble paying your bills.
