Rural urban broadband divide may be shorter but more costlier

Rural areas are unknowingly being denied access to some of the best broadband deals on the market. Ofcom recently reported, for the first time, take-up of broadband in rural areas has overtaken urban connections, yet the disparity of cost is clear and due to get much worse.

The 'broadband blackspots', or non-LLU areas in rural Britain mean households face extra charges just for having the wrong post code. For example, there are nearly 12m households in Tiscali's blackspot, meaning anyone wanting access to its deals would have to pay an extra £8 per month. Similarly AOL's blackspot extends to nearly 10m homes, and as a result imposes an extra £10 for its products.

To make matters worse, Ofcom announced last month it will review the prices that BT Openreach can charge operators for its wholesale services, meaning the cost for non-LLU customers could rise further still.

Rob Barnes, head of broadband and mobiles at moneysupermarket.com, said: "Millions of people are penalised for living in these 'broadband blackspots'. Major household names such as AOL, Tiscali and Talk Talk charge extra for those outside of their LLU network and as a result pass on costs of up to £15 per month.

"With the Ofcom review of BT's Openreach charges due at the end of the year, costs are certain to rise. Ofcom should be ensuring providers accessing wholesale areas are charged a fair amount in order for the provider to then pass on the best value deal to the consumer."