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What is a Fixed Price Broadband Deal?

A fixed price broadband deal is a type of broadband contract that locks in your monthly price for the duration of your agreement. This means you'll pay the same amount each month, without any unexpected price rises or hidden fees. Fixed price deals provide stability and predictability, making it easier to budget for your home internet costs.

Unlike standard broadband contracts, which may be subject to inflation-linked price increases, fixed price deals guarantee that your monthly bill will stay the same. This can be particularly appealing in times of economic uncertainty or when you're looking to keep a tight rein on your household expenses.

Did you know: Some fixed price deals may offer a price guarantee for longer than the initial contract term. Look out for these for extended budget certainty.

What is a Fixed Price Broadband Deal

Why Fixed Price Broadband?

There are several compelling reasons to choose a fixed price broadband deal:

  1. Stability and predictability: With a fixed price deal, you'll know exactly what you'll be paying each month for your broadband service. This simplifies budget planning and helps prevent unexpected charges on your bill.
  2. Avoiding inflation-linked price increases: Many standard broadband contracts include clauses that allow providers to increase prices in line with inflation. With a fixed price deal, you're protected against these price hikes, ensuring that your monthly costs remain stable.
  3. Better value for money: Fixed price deals often represent better value for money over the long term. While they may sometimes have slightly higher initial monthly costs than standard deals, the fact that you're protected against price rises means you could end up saving money over the course of your contract.

Remember: While fixed price deals protect against inflation-linked increases, they may not shield you from price rises due to changes in government policy or taxation.

Why Aren't All Broadband Contracts Fixed Price?

Standard Broadband Contract Terms

Most broadband contracts in the UK are not fixed price deals. Instead, they typically involve an initial fixed term period (usually 12, 18, or 24 months), during which the monthly price is guaranteed. However, after this period ends, providers are free to increase prices in line with inflation or other factors.

Standard broadband contracts often include clauses that allow for inflation-linked price increases. These increases are usually based on the Consumer Price Index (CPI) or the Retail Price Index (RPI), which are measures of inflation published by the Office for National Statistics.

Inflation-Linked Price Increases

The CPI and RPI are used to track changes in the cost of living over time. They measure the average price changes of a 'basket' of goods and services, including things like food, energy, housing, and transportation.

Many broadband providers use these indices to determine annual price increases. For example, a contract might state that prices will increase by CPI + 3.9% each year. So, if the CPI stands at 2%, your broadband price would increase by 5.9% that year.

These inflation-linked price increases can add up over time, making your broadband service significantly more expensive than when you first signed up. Fixed price deals protect against this, ensuring that your monthly price stays the same for the duration of your contract.

How Much Are Mid-Contract Broadband and Mobile Price Rises?

If your broadband or mobile provider has mid-contract price increases built into their terms and conditions, you can expect your bill to go up by around 7-9% in 2024.

Most providers calculate their price hikes by taking the inflation percentage figure (based on the Consumer Price Index or Retail Price Index) and adding an additional percentage on top. For example, some providers add 3.9% to December's CPI figure, resulting in a price increase of 7.9% for spring 2024.

Why Aren't All Broadband Contracts Fixed Price

Other providers, such as Virgin Media, use January's Retail Prices Index (RPI) and add 3.9 percentage points on top. RPI tends to track higher than CPI, so prices are likely to rise more steeply using this method. While January 2024's RPI figure is not yet known, it hit 5.2% in December 2023, which would result in a 9.1% price increase if used to calculate mid-contract hikes.

However, not all providers follow this trend. Sky, along with its sister-brand NOW, doesn't usually increase its prices in line with inflation. If it does opt to hike prices, it allows many of its customers to quit their contracts penalty-free. In 2023, Sky's average price rise was 8.1%, which was much lower than the 14.4% implemented by most other suppliers due to record levels of inflation.

Here's a breakdown of how the biggest providers in the UK change their prices every year:

Provider Price Hike Method 2024 Price Hike
BT December's CPI + 3.9% 7.9%
EE December's CPI + 3.9% 7.9%
Plusnet December's CPI + 3.9% 7.9%
NOW TV No hike in contracts 0%
Shell Energy December's CPI + 3% 7%
Sky No hike in contracts 6.7%
TalkTalk December's CPI + 3.7% 7.7%
Three December's CPI + 3.9% 7.9%
Virgin Media January's RPI + 3.9% 8.8%
Vodafone December's CPI + 3.9% 7.9%

While these mid-contract price increases can be frustrating for customers, they are a common practice among broadband and mobile providers in the UK. Opting for a fixed price broadband deal is one way to protect yourself against these annual price hikes and ensure a stable monthly bill for the duration of your contract.

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Availability of Fixed Price Broadband

Geographic Availability

Unfortunately, fixed price broadband deals are not available everywhere in the UK. Their availability depends on factors such as your location, the providers operating in your area, and the type of broadband infrastructure available.

Fixed price deals are more commonly offered by smaller, alternative network providers (known as 'altnets') who are building their own full fibre broadband infrastructure. These providers, such as Hyperoptic, Gigaclear, and Community Fibre, are gradually expanding their coverage across the UK, but they are not yet available everywhere.

In contrast, major providers like BT, Sky, and Virgin Media, who use the Openreach network or their own cable infrastructure, are less likely to offer fixed price deals. They often rely on inflation-linked price increases to maintain profitability and invest in network upgrades.

Providers Offering Fixed Price Broadband

Some of the providers currently offering fixed price broadband deals in the UK include:

These providers tend to focus on specific geographic areas, so their availability will depend on your postcode. It's always worth checking which providers operate in your area and comparing their offers to find the best fixed price deal for your needs.

Availability of Fixed Price Broadband

Tip: If fixed price deals aren't available in your area, consider providers offering price caps or those known for minimal price increases.

Pros and Cons of Fixed Price Broadband

Like any broadband deal, fixed price contracts come with both advantages and disadvantages. Here's a closer look at the pros and cons:

Advantages

  1. No in-contract price increases: The biggest advantage of fixed price broadband is that your monthly price won't increase during your contract term. This provides peace of mind and makes budgeting much easier.
  2. Better financial planning: With a fixed price deal, you can accurately predict your broadband costs over the length of your contract. This is particularly useful if you're on a tight budget or if you're planning your finances over a longer period.
  3. Typically offered by full fibre providers: Many fixed price deals are offered by providers building full fibre (FTTP) networks. This means you could benefit from faster, more reliable broadband speeds compared to traditional copper (ADSL) or part-fibre (FTTC) connections.

Disadvantages

  1. Limited availability: As mentioned, fixed price deals are not as widely available as standard broadband contracts. You may find that there are no fixed price offers in your area, or that your choice of providers is limited.
  2. Potential lack of bundled services: Some fixed price deals may not include options for bundled TV or phone services. If you're looking for a comprehensive package, you might need to look at standard broadband contracts instead.
  3. Higher initial monthly costs: In some cases, fixed price deals may have slightly higher monthly costs than introductory offers on standard contracts. However, over the length of the contract, fixed price deals often work out cheaper due to the absence of price rises.

Did you know: Some providers offer 'split contracts' where the broadband price is fixed, but other services like TV may still be subject to increases.

Alternative Broadband Providers

Overview of Alternative Providers

In recent years, there's been a growth in the number of alternative network providers (altnets) operating in the UK. These providers are building their own full fibre broadband infrastructure, often focusing on specific regions or types of properties (such as new builds or apartment blocks).

Altnets aim to provide faster, more reliable broadband services than the major providers, often with a focus on customer service and innovative pricing models. Some popular alternative providers in the UK include:

Comparison with Major Providers

So how do alternative providers stack up against the major players like BT, Sky, and Virgin Media? Here are a few key points of comparison:

  1. Speed and reliability: Alternative providers often focus on building full fibre (FTTP) networks, which can provide faster and more reliable speeds than the copper (ADSL) or part-fibre (FTTC) connections used by many major providers.
  2. Customer service: Altnets often pride themselves on providing excellent customer service, with shorter wait times, more personalised support, and higher customer satisfaction ratings than the major providers.
  3. Pricing and contract terms: Alternative providers may offer more flexible contract terms, such as shorter minimum terms or no early exit fees. They may also provide innovative pricing models, such as fixed price deals or contracts that don't require a phone line.
  4. Trustpilot scores and reviews: Many alternative providers have excellent Trustpilot scores and customer reviews, often outperforming the major providers in terms of customer satisfaction and recommendation rates.

Of course, the major providers still have some advantages, such as wider geographic availability, more comprehensive bundled services (such as TV and mobile), and greater brand recognition. However, if you're looking for the fastest speeds, the best value, or the most reliable service, an alternative provider could be the way to go.

Tip: Check if alternative providers offer referral bonuses. You might save money by signing up through a friend or neighbour who already uses the service.

Deciding Whether to Switch to Fixed Price Broadband

Factors to Consider

If you're thinking about switching to a fixed price broadband deal, there are a few key factors to consider:

  1. Broadband speed requirements: Think about how you use the internet and what speeds you need to support your household's online activities. If you're a heavy user or you have a large family, you may benefit from the faster speeds offered by full fibre providers on fixed price deals.
  2. Monthly budget constraints: Consider how much you can afford to spend on broadband each month, and look for fixed price deals that fit within your budget. Remember to factor in any setup fees or equipment costs, as well as the ongoing monthly price.
  3. Contract length preferences: Think about how long you're willing to commit to a broadband contract. Fixed price deals may have minimum terms of 12, 18, or 24 months, so make sure you're happy with the length of the contract before signing up.
Deciding Whether to Switch to Fixed Price Broadband

Potential Savings

One of the main reasons to switch to a fixed price broadband deal is the potential for savings over the long term. While the monthly price may be slightly higher than introductory offers on standard contracts, the fact that you're protected against inflation-linked price rises means you could end up paying less overall.

To get an idea of the potential savings, compare the total cost of a fixed price deal over the length of the contract with the projected cost of a standard deal that includes annual price rises. Don't forget to factor in any setup fees, equipment costs, or early exit fees if you're switching from an existing contract.

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Steps to Switch to Fixed Price Broadband

If you've decided that a fixed price broadband deal is right for you, here are the steps to switch:

Checking Availability

The first step is to check which fixed price deals are available in your area. You can do this by:

  1. Using an online comparison tool: Enter your postcode into a broadband comparison website to see a list of available deals and providers in your area.
  2. Contacting providers directly: If you have a specific provider in mind, you can visit their website or contact them directly to check availability and get more information about their fixed price offers.
  3. Checking with local altnets: If you're interested in an alternative provider, check their website or social media pages to see if they operate in your area. Many altnets focus on specific regions or types of properties.

Evaluating Offers

Once you've found some fixed price deals that are available in your area, it's time to evaluate the offers in more detail:

  1. Monthly price: Look at the monthly cost of the deal and make sure it fits within your budget. Remember that this price will stay the same for the duration of your contract.
  2. Contract length: Check the minimum term of the contract and make sure you're happy to commit for that length of time. Most fixed price deals have minimum terms of 12, 18, or 24 months.
  3. Speed and reliability: Check the advertised speed of the deal and make sure it's sufficient for your needs. If the deal is offered by a full fibre provider, you may benefit from faster and more reliable speeds than with a standard broadband contract.
  4. Setup fees and equipment costs: Check whether there are any upfront costs for installation, activation, or equipment (such as a router). Factor these into your overall budget.
  5. Other terms and conditions: Read the full terms and conditions of the deal, paying attention to any clauses about price increases, early exit fees, or acceptable use policies.

Once you've found a fixed price deal that meets your needs and budget, you can proceed with signing up and arranging installation. Your new provider will guide you through the process and let you know what to expect in terms of timelines and any actions you need to take.

Remember: Even with a fixed price deal, always check if you need to opt-out of price increases for 'extras' like call plans or TV add-ons.

How Can I Ensure I'm Getting the Best Value for Money on My Fixed Price Broadband Deal?

To ensure you're getting the best value for money on your fixed price broadband deal, consider the following:

  1. Compare prices: Use online comparison tools to check the prices of fixed price deals in your area. Make sure to look at the total cost over the length of the contract, including any setup fees or equipment charges.
  2. Check average speeds: The average speed of a broadband package can have a big impact on your experience. Check the advertised average speeds of different providers and packages to ensure you're getting a fast enough connection for your needs.
  3. Consider bundle deals: If you're interested in TV or home phone services, see if you can find a bundle deal that offers good value for money. Sometimes, bundling your services can work out cheaper than getting them separately.
  4. Look for perks and incentives: Some providers offer additional perks or incentives with their fixed price deals, such as vouchers, cashback, or free gifts. While these shouldn't be the sole basis for your decision, they can provide added value.
  5. Read the fine print: Before signing up for a deal, make sure you read and understand the full terms and conditions. Look out for any hidden fees, price increases, or usage limits that could affect the overall value of the deal.
  6. Negotiate with your current provider: If you're happy with your current broadband provider but want to secure a better deal, try negotiating with them. Let them know you're considering switching to a cheaper fixed price deal with a different provider and see if they can match or beat the offer.

Are there any hidden costs associated with fixed price broadband deals?

Fixed price broadband deals typically come with transparent pricing structures, minimizing the chances of hidden costs. However, it's advisable to carefully review the terms and conditions to ensure there are no unexpected charges for additional services or usage beyond the agreed-upon package.

Are there any hidden costs associated with fixed price broadband deals

Common Questions about Fixed Price Broadband

Unfortunately, fixed price broadband deals are not available everywhere in the UK. Their availability depends on factors such as your location, the providers operating in your area, and the type of broadband infrastructure available.

Fixed price deals are more commonly offered by alternative network providers (altnets) who are building their own full fibre broadband networks. These providers are gradually expanding their coverage, but they are not yet available in all areas of the country.

To check if fixed price broadband is available in your area, you can use an online comparison tool or contact providers directly. Enter your postcode to see a list of available deals and providers, and check the terms and conditions to see if the price is fixed for the duration of the contract.

Deciding whether a fixed price broadband deal is right for you will depend on your personal circumstances and priorities:

  1. Budget: Fixed price deals can provide certainty and stability in your monthly broadband costs. If you're on a tight budget or you want to avoid unexpected price rises, a fixed price deal could be a good choice.
  2. Broadband usage: If you're a heavy internet user or you have a household with multiple people streaming, gaming, or working from home, you may benefit from the faster speeds and greater reliability offered by some fixed price deals (particularly those from full fibre providers).
  3. Contract preferences: Fixed price deals typically have minimum contract terms of 12, 18, or 24 months. If you're happy to commit to a longer-term contract in exchange for price stability, a fixed price deal could be a good fit. However, if you prefer the flexibility of shorter contracts or no-contract options, you may want to consider other types of broadband deals.
  4. Available options: The availability of fixed price broadband deals varies depending on your location and the providers operating in your area. If you're interested in a fixed price deal but there aren't any available options in your area, you may need to consider alternative types of broadband contracts instead.

Ultimately, the best way to decide if a fixed price deal is right for you is to compare the available options in your area, consider your budget and usage needs, and read the terms and conditions carefully before signing up.

Choosing a fixed price broadband deal shouldn't necessarily affect your broadband speed. The speed you get will depend on factors such as:

  1. Type of broadband: Different types of broadband technology (such as ADSL, cable, or fibre) offer different maximum speeds. In general, full fibre (FTTP) connections offer the fastest speeds, followed by part-fibre (FTTC), cable, and then ADSL.
  2. Infrastructure in your area: The speed you can get will depend on the type of broadband infrastructure available in your area. For example, if you have access to full fibre (FTTP), you may be able to get faster speeds than with a part-fibre (FTTC) or ADSL connection.
  3. Provider's network: Broadband speeds can also vary between providers, depending on factors such as the quality of their network infrastructure, the level of network congestion, and the specific package you choose.

Many fixed price broadband deals are offered by alternative network providers (altnets) who are building their own full fibre (FTTP) networks. These networks can offer faster and more reliable speeds than the copper (ADSL).

Social tariffs are special discounted broadband packages available to households receiving certain government benefits, such as Universal Credit, Pension Credit, or Income Support. These tariffs aim to make broadband more affordable for low-income households.

Currently, social tariffs are offered by several providers, including BT, Virgin Media, Sky, NOW Broadband, and Hyperoptic. However, these deals are typically not fixed price contracts. Instead, they offer a discounted monthly rate for a set period (usually 12 months), after which the price may increase.

That said, some providers are starting to offer longer-term discounts on their social tariffs. For example, Fibrus, a full fibre provider operating in Northern Ireland, offers a discounted rate on its 100Mbps package for as long as the customer remains eligible for the social tariff.

If you're eligible for a social tariff and are looking for a more affordable broadband option, it's worth checking with providers in your area to see what deals are available. While these deals may not offer the same long-term price stability as a fixed price contract, they can still provide significant savings on your monthly broadband costs.

Bundling your TV package and home phone with your fixed price broadband deal can offer several advantages:

  1. Cost savings: Providers often offer discounts when you bundle multiple services together. By combining your broadband, TV, and home phone into a single package, you may be able to secure a cheaper deal than if you purchased each service separately.
  2. Convenience: Having all your services with one provider can simplify your billing and make it easier to manage your accounts. You'll have a single point of contact for customer support and only one bill to keep track of each month.
  3. Exclusive content: Some providers, such as Sky and Virgin Media, offer exclusive TV channels and on-demand content that you can only access as part of a bundle. If you're a fan of specific shows or sports, bundling your TV package with your broadband deal may give you access to content you can't get elsewhere.
  4. Upgraded equipment: When you bundle your services, providers may offer upgraded equipment, such as a higher-spec router or a more advanced TV box. This can enhance your overall experience and ensure you're getting the most out of your services.

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Page last updated on: 21/06/2024

Page reviewed by: Brijesh Patel

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