Posted by Andy Betts on 2021-01-12 16:37 in Features Virgin Media Direct Save BT Gigaclear EE
How often do you make calls on your landline these days? Chances are, it's not often at all.
The number of landline calls has been slashed by well over a half over the last few years. Millions of us now only have landlines because we need them for our broadband. But that's about to change.
A new wave of standalone, broadband-only services are on their way, spearheaded by BT and EE. And it's not just a passing trend. Within five years this will be the norm.
So why is this happening now? Simple answer: the days of the landline are numbered. The UK's ageing phone network is set to be switched off in 2025, to be replaced by a combination of mobile and internet calls. The transition is already under way.
What's happened is that Openreach, the BT-owned company that runs the network, has effectively split the phone service out from the copper wire network that it works on. So where you'd normally automatically get a phone sevice whenever you signed up to a broadband package that uses the copper network (which is most of them), now you won't.
Most fibre services still need to use the copper lines, but increasingly you won't get a phone number or dial tone unless you really need one.
This is leading to the launch of new broadband-only packages (the technical name for these is SOGEA broadband, but you don't need to worry about that). Our newly updated guide to Broadband Without a Phone Line has got all the details you need.
Leading the way in this new generation are BT and EE.
- BT are offering their Fibre Essential, Fibre 1 and Fibre 2 deals as broadband-only packages, on two-year contracts and priced at the same rate as the equivalent with-landline deals.
- EE offer as standard all their regular fibre packages as broadband-only on 18-month contracts. If you do want to keep your landline you have to add it during checkout, and also pay a little extra for a call package.
This is awesome news for those of us whose landlines attract cold callers and scammers and nothing else. But you do need to be slightly cautious before you sign up. When you take on broadband-only you will give up your phone line and lose your number. If you later have second thoughts, you'll be able to get a new line, but you won't get your number back.
If you're in any doubt, a simple compromise solution is to stick with what you've got for now and just unplug your phone. There's no real cost difference either way, at the moment.
These new services aren't your only options for landline-free internet. The biggest provider that can give you this is Virgin Media, who offer all their broadband deals with or without a phone connection. Either way, you don't need a BT line installed to get them.
There's also the small but growing band of full fibre providers, like Gigaclear and Direct Save. They have limited coverage, which is expanding all the time, and come with the added benefit of delivering the fastest broadband in the UK. You can get top speeds averaging around 900Mb - around 13 times faster than the most popular fibre deals.
If you're keen to switch to broadband-only, or want to find out what your options are, use our postcode checker to see the best broadband deals available in your area today.
Posted by Andy Betts on 2020-11-13 18:10 in News Features EE BT John Lewis Plusnet
Make sure you read the terms carefully when you take out a new broadband deal: there's a growing trend for some providers to sneak in new clauses promising significant mid-contract price rises.
The four BT Group brands - BT, EE, Plusnet and John Lewis - have now all announced new policies to allow bigger price hikes on their deals. They will see annual increases equal to the consumer price index (CPI) inflation rate - plus an extra 3.9% on top.
Previously, ISPs would typically peg their rises to the CPI, or in some cases promise none at all.
Plusnet, for example, have effectively replaced their heralded fixed price guarantee with the guarantee of at least one - and potentially two - price rises over the course of a broadband deal.
BT, meanwhile, no longer offer contracts shorter than the two-year maximum that Ofcom allows. That means you'll be paying at least 7.95% more at the end of your deal than you were at the start.
Here's what they've announced:
- BT and EE are using the CPI published every January. The price rises go into effect from 31st March each year, and apply to customers who signed up after 1st September 2020.
- For the 2021 increase, Plusnet and John Lewis are using the CPI published in April and applying the increase from 1st June. After that, they're using the CPI published every January, and adding the increase to bills from 1st March. It affects customers who signed up from 7th October.
If you're on an older deal and still within your initial contract period you won't be affected by these changes until the time comes for you to renew. If you're out of contract you will be affected, although you should never stay on an out-of-contract deal for long.
So how much more will you be paying? For reference, the CPI rate for December 2019 was 1.3%, so that's the rate by which your price would have gone up on most deals. Under the new policy, that increase would have been a hefty 5.2%.
The Bank of England's target for the CPI is even higher at 2%. Of course, with the uncertainty that comes from the UK being in the middle of the biggest economic slump in 300 years, it's hard to predict what that rate will be in future. Needless to say, negative inflation won't result in a discount as that 3.9% will stay in place regardless.
What can you do?
Ofcom rules state that you can quit your contract without penalty if your broadband provider introduces "unexpected" mid-contract increases. But by announcing these plans, and writing them into your contract, they won't be classed as unexpected, so there's no escape.
What you can do instead is ensure you factor in the changes in your monthly charges when you're comparing broadband deals. And also keep in mind the date you sign up. If you take out one of these deals in February or March you'll be hit by an immediate price hike.
This move makes genuine fixed price guarantees more valuable than ever, especially if you're signing up for longer than 12 months. TalkTalk, italk and SSE are among the suppliers still offering them, so if you want clarity over what your bills will look like over the next couple of years they're worth checking out.
If you're ready to find a better deal on your broadband, use our postcode checker to see what's available in your area.