Cost of broadband increases faster than inflation

It has been reported that for the first time in five years the cost of broadband has increased, rising at twice the rate of inflation with an increase of eleven percent.

The UK is said to be one of the most affordable places in the world when it comes to broadband costs, and over recent years broadband services have become increasingly affordable, enabling more and more people to enjoy the many benefits of having broadband access in the home.

However, as most people know the cost of pretty much everything seems to be rising these days, and broadband has now joined the list of services that have increased in price. According to reports the cost of broadband has increased for the first time in five years, rising at twice the rate of inflation by around eleven percent.

According to a recently released report the headline speed for broadband in the UK has also increased over this period by around twenty nine percent. In order to come to these conclusions the study involved average first year cost of the ten cheapest broadband providers and then comparing them between January 2007 and January 2011. This was done amongst standalone providers only.

The results of the study showed that in 2007 the cost of a standalone broadband package an average £172.66. In 2008 this fell to £148.95 and in 2009 it fell once again to £132.65. However, this January the price increased by £12.31 from £114.18 in 2010 to £126.49. A number of factors have contributed to the increase in cost, including the VAT hike at the start of this year and soaring inflation.

One industry official said: “The VAT rise and effects of inflation are taking their toll, but providers are clearly placing a premium on broadband-only deals in their drive to sign up customers to their bundled packages. Broadband has become an essential utility for the majority of households which may be precluded if prices continue to rise – denying access to essential information and financial services.”

Source – Belfast Telegraph