Save £110 with a broadband bundle!

by Szu Ping Chan on 24 July 2009  |  9 comments
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You may think bundles are just a way for companies to squeeze more cash out of you. But on closer inspection, they could prove good value...

Someone recently asked me that all important broadband question: To bundle or not to bundle?

Bundle deals combine broadband with other services such as phone line rental and television services. I, for one have always been anti-bundle, and like to choose my deals in the same way I book my holiday.

I do my research separately for flights, accommodation and car hire, find the best deals available, then pick 'n' mix my way to the perfect holiday, or in this case, broadband and phone deal. For me, it's always paid off.

Many of you agree. According to comparison site Broadband Choices, nearly a third (30%) of you refuse to have anything to do with bundles.

But recent research has got me thinking twice about whether it's really wise to be so prejudiced against the humble bundle.

Broadband Choices surveyed 10,000 people and found that 29% were unsure whether a bundled package would offer better value than their current deal, but it also found you could save £230 by bundling.

But when it comes to broadband, does it really pay to put all your eggs in one basket?

Here's what four companies offer when it comes to broadband bundles:

There are so many combinations when it comes to broadband bundles, so I've stuck to the most basic packages to give an idea of what each offers.

More and more providers are providing better value when it comes to providing a 'one stop shop', where you can buy your phone, broadband and TV from one place.

For example, if you paid your landline rental to BT, it would cost you £11.75 per month. Add that to the cheapest broadband package from Plusnet at £5.99 and a basic Sky Variety pack at £16.50, and it adds up to £34.24 for these services alone. That's over £110 a year more expensive than the cheapest bundle in my table.

As far as bundle value goes, you may think it's time to ditch BT and go for Tiscali. But there's more to these deals than meets the eye.

So, in an effort to clear up any confusion, Broadband Choices have come up with five things to consider when buying a bundle:

TV channels

When it comes to choosing a TV package, the real costs mount up when you start throwing in add-ons such as movie packages. So make sure you do your homework to ensure you're getting a good deal before you sign up.

But basic channels are just as important, and you could miss out on popular channels if you don't stay alert.

For example, while Virgin may offer its 'M' TV service free of charge with its bundle, if you want popular channels such as Sky One, Living and Discovery, you'll have to pay an extra £5.50 a month, or upgrade to its L or XL packages (which will cost you at least an extra £10 a month).

Broadband speeds

Broadband speeds may be the first thing you look for when you choose a broadband deal, but download limits are equally as important.

While Virgin Media and Tiscali offer unlimited broadband, BT and Sky impose download limits on their basic packages. For example, Sky Broadband's Base package has a download limit of 2GB.

That might not sound too bad, but for someone like me who downloads music regularly and likes to watch BBC iPlayer, that 2GB allowance is likely to run out away pretty quickly.

BT's Option 1 broadband's 10GB limit is much better, and unless you're a download fiend, you should have no trouble keeping within this limit.

Have a play with this broadband usage calculator to get an idea of your personal download habits.

Home phone

With mobile technology all the rage, you may sometimes feel like your home phone is a bit redundant. But getting value from your home phone shouldn't be ignored.

Tiscali offer calls to international destinations as well as UK landlines, and if you pay an extra £5 a month, Sky Talk Unlimited gives you calls to 20 countries around the world. If you regularly call one of these countries, it may be worth signing up.

Then again, you may find it cheaper to register with Skype, which allows you to make free international calls via the internet.

Functionality

With services such as the Sky+ box enabling you to record, pause and rewind live TV, on-demand services are quickly becoming all the rage.

Both Sky and BT include on-demand add-ons with their standard packages. If you want to add Virgin's V+ on-demand box, you'll have to fork out a £5 a month subscription fee, plus a £69 installation fee (special offer until 3rd August).

But though the joys of on demand make viewing a lot easier, remember that services like BBC iPlayer and Channel 4's 4OD allow you to catch up with programmes you may have missed on terrestrial television, free of charge.

BBC's iPlayer also lets you download programmes onto a limited number of mobile phones and media players, so you can watch something more interesting during your daily commute than a man breathe in your face on the 07.52 to Waterloo.

Sticking with BT

Whenever I write a bundle article, there's always some staunch BT fan who will insist that there's nothing like BT, and some of you are unwilling to switch because BT is still the most well known provider.

So if you want BT, but don't have a phone line yet, until 30 September, you can get free BT line installation, worth £122.50 (though you'll have to sign an 18 month contract) if you call 0800 800 150 and ask for the 'New line free connection' offer.

Surfing for value

Another alarming statistic revealed by Broadband Choices is that 60% of consumers have not shopped around for a better deal in the past four years.

Even if you're not a bundle fan, the broadband market is so competitive that there isn't a better time to switch supplier.

The cheapest standalone broadband is Plusnet Value, which you can get for £5.99 a month, including free set up and a free wireless modem. The only downside is you'll have to sign an 18 month contract and are restricted to a 10GB monthly download limit (though all downloads between 12am and 8am are free).

If you're an O2 customer looking for unlimited downloads, you can get its standard 8Mb package for just £7.34 a month. Plus for a limited time you'll also get two months free.

Finally, if you don't have a phone line, and don't fancy getting a dongle, check out Now broadband, which uses radio signals to beam broadband into your home, and doesn't require a phone line.

On the downside, the fastest speed you'll get is 1Mbps, and it costs a bit more than traditional broadband (prices start at £10 a month for a 256kpbs service).

However, there isn't a landline charge in sight, so you can surf to your heart's content without paying BT or any other landline provider a penny.

More: Seven cheap alternatives to iTunes | Get unlimited calls and texts for a fiver!

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