Cheapest UK broadband deal launched

29 April 2012

Direct Save Telecom has launched the UK's cheapest broadband contract charging just £2.49 a month.

The company promotes the deal as having no gimmicks and the price will stay the same for the length of the 24-month contract.

There are no installation or set up costs, you'll get a free wireless router and free evening and weekend calls and the only extra cost is the monthly line rental charge of £12.85.

The broadband service is available throughout the UK and the average speed is 13Mb. However, it's a limited usage deal with a 20Gb usage a month. This means that if you're a heavy user, it might not be the best deal for you.

As with all broadband services there is a two-week cooling off period, but if you change your mind after this you'll be charged £5 for each month you're yet to use (for both the line rental and the broadband).

Competitive deal

When looking at the price it's a very competitive deal and the only cheaper monthly contract on the market comes from Primus, which costs £1.20 a month for 12 months  – but you'll also have to pay a £79 connection cost and £4.95 for the router.

Tesco has the third cheapest headline rate of £2.50 a month, but this shoots up to £6.50 after 12 months but this does include unlimited broadband use, so will be better for people who need a bigger download limit.

Before you sign up make sure it meets your requirements as you'll be locked in for two years and remember that it might not be the most competitive deal at the end of this period.

Stavros Tsolakis, chief executive of Direct Save Telecom, says: "Prices are going crazy just now. Petrol is going through the roof, there is about to be a 30% increase in the price of a first class stamp, and you do not get much change from a fiver when you buy a pint of beer.

We are all currently being hit hard in the pocket, and if the forecasters are proved correct, there could be more hard times ahead."

Charlie Posonby, chief executive for broadband comparison website SimplifyDigital, says: "Even though it's a niche player, Direct Save's new deal can only be good news for the consumer as it puts further downward price pressure on the already highly competitive broadband market. Customers should beware the 24-month contract though."

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