Broadband users rush to Sky
According to its quarterly figures, Sky has added more than 200,000 new customers in the period from April-June compared to 103,000 for BT, 62,000 for O2 and 41,000 for Carphone Warehouse, retailer for the Talktalk brand. The statistics show consistent growth for Sky broadband - its numbers were up by 229,000 at the end of March to reach 1,428,000 subscribers less than two years after the service was launched. That meant that Sky broadband had added 50% more customers than its nearest competitor in the first quarter of 2008 and at that point the company set a target to have three million broadband customers by 2010.
BT by contrast saw its share price slump when its 103,000 new subscribers were announced - that's 50,000 down on the previous quarter. BT does however retain market leadership with around 4.5million customers. Talktalk too has slashed its broadband subscriber target for the year - dropping its original target of 400,000 new customers to between 200,000 and 250,000 net additions.
So what's the big deal about Sky?
There are many big selling points for Sky - including the fact that it offers free broadband to existing and new Sky subscribers through its Sky Base package. The deal includes download speeds up to 2Megabits (Mb), a monthly usage allowance of 2Gigabytes (GB) and a free wireless router worth £50. If you're a Sky subscriber and a light internet user, this is the market-leading offer.
Sky is competitive for heavier internet users too. If you use the internet regularly, the Sky Mid package includes 8Mb speeds and a 40GB capacity along with the free wireless router for just £5 a month, while heavy internet users will be drawn to the Sky Max package with 16Mb speeds, unlimited* downloads and the free wireless router for £10 a month. These broadband charges are in addition to the cost of your monthly television package.
However, where Sky really comes into its own is as a provider of bundled services - that is a combination of phone, TV and broadband rolled into one deal. By bundling products, customers remove the hassle of making several payments to different providers each month and invariably save money in the process.
Sky has the premium television service available - and when this is coupled with free broadband and phone calls, its deals become very attractive. Millions of people already pay Sky more than £30 a month just to enjoy its range of channels, keep up with the latest Barclays Premier League action or watch the hottest new movie releases shortly after they close at the cinema. As a result, it makes sense to pick up your broadband or calls for free on top of that payment.
The bundled packages are known as Sky See, Surf and Speak. The combination of packages you choose depends on your needs - you can adjust the deals as appropriate depending on how many TV channels you want, how much free call-time you require and how fast you want your downloads to be.
For example, with the 3 for £16 deal, you can pick up one TV mix, 2Mb downloads and free UK and evening weekend calls for £16 a month plus a one-off £30 charge. With the 3 for £36 deal, you could enjoy the same broadband, TV and phone deal plus a Sky Sports Mix.
Another interesting fact about Sky's broadband service is that it is actually one of the most consistent performers on the market. It finished second in our first quarterly speed test analysis. In the 2Mb category, it was actually the top performer producing average speeds that actually exceeded the rate advertised at 2.47Mb.
Which other deals are worth considering?
The growth of O2 in the previous quarter should not go unnoticed - it is a relative newcomer to the market and yet it was only behind Sky and BT with 62,000 new subscribers.
One of the key factors behind the success of O2 is that it is building a solid consumer reputation. In our speed test results it was actually the top performer - providing average speeds that were closest to those advertised. It produced average speeds of 5.39Mb on its 8Mb packages, 7.71Mb on its 16Mb products and 8.80Mb on its 20Mb products, making it the top performer in the 8Mb and 16Mb+ product categories. Its packages start with the Standard broadband deal which costs £7.50 a month for O2 customers, £12.50 a month for others, and includes 8Mb speeds and unlimited* usage.
However, before choosing a broadband deal it's best to think about how you use the internet. For example if you're someone who checks emails a couple of times a week, your needs are very different to someone who is online for six or more hours a day working, downloading music or online gaming. So think about the type of user you are to make sure you don't pay over the odds for package options you simply don't need.
Here are some of the leading deals for different types of users:
- For light internet users: If you're a Sky customer, sign up for Sky Base because it's free and is perfectly adequate for your needs with 2Mb speeds and a 2GB cap. There are also competitive broadband and phone deals from the likes of TalkTalk and Virgin Media. However, if you want a broadband only deal, you should simply look for a cheap and reliable offer - PlusNet Option 1 costs £9.99 a month and offers speeds up to 8Mb and a 2GB monthly download cap. Another benefit of this deal is that you are not tied in to a lengthy contract - the contract is only one month - making it a great option for those who may move in the next 12 to 18 months.
- For medium internet users: Speed will be more important to you and you won't want to be stung by a tight download cap. Tiscali offers 8Mb broadband at £6.49 for the first three months and £14.99 a month thereafter. This deal also includes a free wireless router and unlimited* downloads.
- For heavy internet users: You spend a lot of time online and possibly use the internet for regular downloads or gaming - as a result you'll need a large download cap and super-fast speeds. For existing Sky customers, Sky broadband Max is highly competitive at £10 a month with 16Mb speeds and unlimited* downloads. The O2 broadband Ultimate deal is one of the best around for non-Sky subscribers at £15 a month for O2 customers, £20 a month for others, with 20Mb speeds and an unlimited* download cap.
Remember to shop around with a broadband comparison tool and think carefully about the type of user you are before you choose a deal. Also bear in mind you could save money with a bundled deal if you want to combine broadband with a phone, TV or even a mobile phone package.
If you want to avoid line rental, perhaps because you have bad credit, live in rented accommodation or just want to be able to move around freely when surfing the web, you should consider the mobile broadband packages available from the likes of 3, Vodafone, Orange and T-Mobile. For more information on these deals check out our article 'Is this the end for landlines?'
Have your say: Let us know your experience with your broadband provider. Whether it's good or bad, such information is useful to those currently looking to sign-up for or change their broadband package. Visit our forum and share your views with other members.
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Disclaimer: Please note that any rates or deals mentioned in this article were available at the time of writing.
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