Dial-up to become extinct as broadband prices plummet

The cost of broadband for UK consumers fell dramatically by up to a fifth (17%) last year and the trend is set to continue, as BT opens up more of its lines to other broadband companies and reduces the wholesale cost of line rental this spring.

Independent price comparison and switching service uSwitch.com predicts that over 80% of all households are likely to have an internet connection by 2010, but only 100,000 connections, less than 0.5% of the total, will use dial-up technology.

Broadband has revolutionised the internet in much the same way that digital broadcasting has transformed television and radio. Now, as the nation prepares for the analogue broadcast signal to be turned off as part of the ‘digital switchover’, it looks like the major internet service providers (ISPs) could do the same with dial-up internet connections as they look to upgrade all of their customers to broadband over the next 4 – 5 years.

Steve Weller, Head of Telecommunications at independent comparison and switching service uSwitch.com comments: “The broadband market is booming which has led to prices being slashed to an all time low. While the major ISPs continue to offer a dial-up service, they do not actively market it, and the pricing shows that they are clearly encouraging customers to go straight to broadband. Broadband is now the same price, and in some cases cheaper than dial-up, and there is no question of its supremacy in terms of the applications its enables. The days of dial-up are most definitely numbered.”

Although prices have fallen by up to 17% the array of products is vast. The introduction of ‘free’ broadband and ‘bundles’ has further bamboozled consumers so researching the best product is vital to avoid disappointment – both for product satisfaction and, most importantly, cost. There is a difference of a staggering £360 a year between the cheapest and most expensive broadband supplier so the need to choose the right product is vital.

Weller continues: “It’s easy to get confused with all the different types of products on the market. However, there is something for everyone, whether it’s a bundle or a selection of individual products. The wealth of ‘free’ deals that have recently become available on the market means that broadband is affordable, effective and the only viable way to take advantage of the growing expanse of broadband-reliant online content.

“The future heralds not only the death of dial-up, but also the birth of bundles. Companies are increasingly ‘bundling’ together products such as broadband, home phone, mobiles and digital TV to produce cost effective packages which provide customers with comprehensive services.”