Bundle confusion
The major providers - Sky, BT, Virgin Media and TalkTalk (which uses YouView for its TV channels) - are desperate to lure in new customers and are therefore frequently launching discount deals.
However, it’s hard to know which provider will offer you the best value for money. Most providers offer at least seven or eight packages at varying prices, each with different allowances of broadband, phone calls and TV channels.
For example, Virgin offers a basic package at £13 a month with unlimited internet, 77 channels and weekend calls. It also has a similar deal for £8 a month, with 52 channels, and one for £26 which includes free evening calls. Just to complicate things further, there are also a number of deals with different allowances ranging all the way up to £69.50 a month.
But more than a third of people questioned in this latest study said they rarely watched the TV channels they were paying for and 47% weren’t sure how long their contract lasted.
Worryingly, 46% were put off switching to a different supplier, which could provide a better service and save them money, because they said it was too complicated trying to find out what the best alternative was.
Misleading contracts
When looking at bundle contracts, the study found the small print used to list terms and conditions was far smaller than the recommended standard size for reading and that finding out the average price of a contract takes at least four clicks.
Customers are also being misled when it comes to pricing. Some offers are quoted for as low as £3.25 a month, but once the extra costs such as line rental, installation and connection fee are added in the price is much higher.
Bonus offers
Another thing to factor in is the various discounts and offers which will be thrown in to most new bundle deals. For example right now with Sky you can get a £25 Marks and Spencer voucher, with Virgin six months free, and with BT a £100 Sainsbury’s voucher.
Although these are tempting, make sure you work out the monthly costs for the whole term of your contract before signing up. The deals are there to grab your attention, and some are extremely competitive, but don’t let them distract you from the small print of your contract.
How to find the best contract for you
[SPOTLIGHT]First decide what you want out of the contract. Are you basing it completely on cost? And if so makes sure your allowance meets your needs otherwise you’ll be stung by extra charges if you exceed it each month.
Asking your existing provider for your average monthly usage will give you a good indication of what you’re already using. You also need to look at usage limits, speed, phone calls and TV channels, as well as what the monthly price is and how much it'll cost for the full contract.
Many contracts will try to lock you in for 18 months and these often have penalties if you leave early.
You can learn more about what to look out for in our article - Switching broadband: Is it worth the effort?
When it comes to the standard deals between the main providers, this table shows you what’s on offer. As you can see it's worked out with a total cost for the first year, but this could change if you have a longer contract.
The final price is also inclusive of any current deals - which generally only last for a few weeks - but doesn't include installation or set up costs.
The basic bundle packages
|
Package* |
What’s included |
Offers |
Monthly cost |
First year cost |
|
14Mb broadband speed, 2GB limit, weekend calls included and 315 TV channels. |
£10.75 for six months, £21.50 thereafter, £25 M&S voucher (ends 28th March). |
£36.00 |
£367.50 |
|
|
BT YouView TV Essential + Unlimited Broadband + Weekend Calls |
16Mb broadband speed, unlimited data, weekend callsincluded and 70 channels (four in HD). |
Free £100 Sainsbury's Gift Card (ends 25th March). |
£31.45 |
£433.35 |
|
Unlimited broadband allowance and speed, weekend calls included and 77 TV channels. |
12 months half price, £75 Credit, free installation and an extra £35 booking online (total saving = £315.95). Ends 25th March. |
£40.99 |
£225.88 |
|
|
Unlimited broadband allowance and speed, anytime calls included and 82 TV channels. |
£10 for six months (£15.50 thereafter) and a £50 Love2Shop voucher (ends 28th March). |
£29.95 |
£332.40 |
*source: broadbandchoices.co.uk
Now as you can see the prices between these basic deals vary quite a bit.
Virgin offers the cheapest package, but that's only because of the discount offers currently available. Sky is the second most expensive, but also includes the highest number of TV channels, while only Virgin and Talk Talk offer unlimited broadband.
In comparison, below I've listed some of the most expensive deals around. These offer faster broadband speeds, higher monthly allowances and more TV channels but they come at a price.
The most expensive bundle packages
|
Package* |
What’s included |
Offers |
Monthly cost |
First year cost |
|
Sky Entertainment Extra + Fibre Unlimited + Talk Anytime + HD pack |
38Mb broadband speed and unlimited usage, anytime calls included and 381 TV channels (including 66 in HD). |
Three months half price fibre broadband; HD pack £5 for six months (£10.75 thereafter); £25 M&S voucher - online orders (offer ends 28th March). |
£76.25 |
£853.50 |
|
BT YouView TV Unlimited + Unlimited Infinity 2 Broadband + Calls |
76Mb broadband speed, unlimited usage, evening and weekend calls included and 70 TV channels (four in HD). |
Free £100 Sainsbury's Gift Card - online orders (offer ends 25th March). |
£53.95 |
£685.35 |
|
Virgin Premiere Collection + broadband upgrade (100Mb) + Phone upgrade (Talk Unlimited) |
100Mb broadband speeds, unlimited usage, anytime calls included and 200+ TV channels (23 in HD). |
12 months half price + £75 Credit + Free Installation PLUS extra £35 off online (offer ends 25th March). |
£93.48 |
£543.88 |
*source: broadbandchoices.co.uk, TalkTalk only has one package deal
As you can see from the tables there is a lot to choose from therefore it's vital you shop around before you sign on the dotted line. Most providers will also have a cooling-off period, typically of around two weeks, in which you can cancel the contract if you’re not happy with it.
When you call up to ask for a new contract always ask what extras are included and see if you can get any money off your monthly bill. The company will want your custom so it might be willing to do this if it means you’ll stay with it instead of switching.