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Cheap Broadband Pitfalls (And how best to avoid them!)

1 May 2009 Written by Francis
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Cheap broadband deals are everywhere. In fact, consumers have never had more choice at lower prices than they do right now. But how can you tell the difference between a genuinely good deal and an ISP that offers a cheap up front price and then hits you with charges afterwards? When is an ISP genuinely serving budget consumers, and when is it cutting corners? Take a look at our quick guide and you’ll soon be able to spot the real deal.

Broadband Contracts and Pricing

It’s really important to make sure that you fully understand the ins and outs of the contract with your ISP. Most providers will expect you to sign up for between six and eighteen months. If you’re going to move house or you simply don’t want to be tied down, there are a number of ISPS that can offer you a subscription with no fixed contract. Keep in mind however that you’ll likely to end up paying a premium for these services.

The biggest problem with avoiding contracts altogether is the little advertised ‘exit fee’, a fee that even most ‘no contract’ ISPs will charge if you leave within a certain amount of time in order to recover their installation costs. If you’re happy with a long term contract, make sure you know exactly what your ISPs responsibilities are, and where you stand legally should things go wrong.

Broadband Tech Support; Free, Cheap or Expensive?

The number one ways cheap ISPs make their money back is through charging heavily for technical support. It can be frustrating enough waiting for hours even when you don’t have to pay for the call, so just imagine how much worse it can be when you’re calling a premium rate number. Not all cheap ISPs charge high rates but it’s worth checking before you sign a contract. Keep in mind that although you might be technically minded or have a friend who can help you with setting your broadband up, there’s nothing you can do if there’s a fault with the actual supply. It can take hours on the phone just to prove that there is a problem. Make allowances for calling technical support a few times a year and see if you’re still saving money on the deal.

Broadband Speeds and Capped Broadband

Generally, cheap ISPs won’t try to catch you out on speed, but they will try to sell you the fastest package. Figure out what speed you’ll need first and don’t get drawn in by ‘deals’. 2 Mbps is more than enough for internet browsing and ‘light’ use such as YouTube videos and emails. It’s all up to the individual though – some are happy with 1 Mbps and some wouldn’t settle for less than 10 Mbps. What you do need to watch out for is something known as ‘speed throttling’.

ISPs like to advertise as ‘unlimited’ when actually what they really mean is ‘unlimited, providing you don’t use too much’. Depending on upon the contract when consumers reach this limit a number of things could happen. The ISP could severely slow down your connection speed to prevent you from downloading. This can last for anything from a few hours to an entire month depending on the contract. Some ISPs even charge you per GB for the data you download once you hit their limit, so it’s vital that you check out the policy on usage.

The problem for consumers is that this limit is normally a vague definition rather than an actual number, so it’s hard to tell which ISPs are going to limit you and which are not. It’s safe to assume that cheaper ISPs offering fast speeds are likely to employ some sort usage limit, so the best way to find out exactly how well a certain ISP fares is to ask online. Check out forums and comparison sites to see which ISP users rate the highest and don’t be afraid to ask questions to people who are already on the contract you choose.

Hidden Costs of Broadband

There are number of costs associated with any type of broadband that many consumers don’t consider when they look at the monthly charge. Some of these are advertised but simply not considered by most when choosing a package, but others are harder to spot. Here are a few things that you need to watch out for:

· Hardware Costs – Hardware like modem and routers that are less likely to be provided free on budget ISPs. Even if your ISP offers free hardware, there’s a chance you’ll end up paying for delivery or costs if it breaks down.

· Line Rental – If you’re just using your line for broadband, line rental can seem like a lot of money. Don’t forget to include the cost of a BT line in your budget. There are a few ways around line rental. Using mobile broadband from companies like Orange requires no fixed line at all. A few ISPs also offer reduced price or even free line rental.

· Cancellation – You can be charged heavily if you want to leave a contract early. Many ISPs will require the remaining cost of the contract in full, while some offer a fixed rate ‘cancellation’ fee. This doesn’t apply if you’re not receiving the service you’ve paid for, though. Make sure you read up on your rights if you’re thinking about canceling due to poor service.

It’s always best to look at more than just price when choosing an ISP. Use comparison sites, add up all the extra potential charges you can think of for each ISP, read the small print and find out from other users exactly how well they treat customers. Armed with this information, you are much more likely to find a cheap broadband package that really is a great deal.

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