TalkTalk guarantees 'no broadband price hikes': but should you switch and fix?

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TalkTalk has launched a new range of broadband packages, which guarantee no price rises for the duration of the contract.

The provider says consumers are looking for more transparency with their bills, and claims it is the first broadband provider in the UK to offer this kind of long-term fixed deal.

Broadband providers in the UK typically increase prices once a year. In 2016, Virgin Media increased the price of its broadband by £2.99 per month while BT raised its standard broadband prices by £2. Sky last raised its line rental fees in December 2015, upping them by £1 per month.     

 

How TalkTalk’s new deal works

TalkTalk’s new fixed unlimited plan costs £22.95 per month, with customers locked in at that price for either 12, 18 or 24 months. This price is available for both existing and new customers, and covers your line rental and broadband services, but not landline calls. 

Any add-ons, such as mobile and TV, are charged separately and are not subject to the price guarantee.

At the end of the fixed period, users will be moved to TalkTalk’s ‘low price plan’, although this currently costs a pricier £25.50 per month.

Tristia Harrison, TalkTalk’s consumer managing director, says: “Seeing your price rocket mid-contract or the best deals saved only for new customers is incredibly frustrating and simply isn’t fair. We’re acting on what customers have told us and are proud to be leading the way in offering the value for money and peace of mind people deserve.”

Moneywise analysis

Fixing can be good for consumers who are concerned about rising prices. However, broadband prices don’t tend to fluctuate by as much as other products, such as energy.

Providers normally hike prices once a year, typically by a few pounds a month.

Also, while this TalkTalk fixed deal offers security, it is more expensive than comparable products on the market.

 

TalkTalk’s fixed plan costs £22.95 per month, but a 12-month Sky Broadband Unlimited plan is currently on offer for £17.40 a month for new customers without Sky TV, plus £9.95 installation costs. Of course, this price could rise at any time during the next year – although it would have to increase by more than a hefty £5.55 a month to cost more than TalkTalk’s offering.

TalkTalk itself even offers a standard £20 per month broadband plan, although again this could rise during 2017.

Many people also get their broadband bundled in with television, phone and mobile packages. This could prove cheaper than splitting your products across multiple providers, even if the broadband element alone is cheaper. So ensure you compare prices across the market an across different products first.

Be aware that if you cancel TalkTalk’s new fixed deal early, you’ll also pay penalty fees of £13 for each month left on your contract..

Published: 11 January 2017
Last updated: 11 January 2017

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