Broadband is worth waiting for

As competition to offer 'free' internet access heats up, beware of jumping in too soon and signing a long contract

Broadband is worth waiting for (PA Wire)

Right now, tens of thousands of crafty consumers across the UK are logged on to broadband without paying a penny for it.

But they haven't signed up to the heavily promoted "free" deals from Orange and TalkTalk that give consumers a high-speed connection to the internet. Instead, they're using stolen or borrowed WiFi - or wireless internet access. This is usually available by sitting in the garden or in a flat and using their neighbours' connections.

Be aware that you can face criminal charges for using another person's home wireless router without permission. However, many homeowners have been clubbing together to arrange their own WiFi "antenna", and don't mind sharing it with others in their block of flats or surrounding area.

Alternatively, free-access zones are often located in internet cafés or hotel receptions; you can find these using websites such as www.free-hotspot.com or www.freespot-uk.com. All you need is a laptop that's WiFi enabled and an internet service provider such as Wanadoo or AOL.

Most new laptops let you connect to WiFi as standard but older machines will need what's called a local area network (LAN) card; they usually cost about £25 in electronics stores and are simply plugged into a port on your laptop.

But while many users pay absolutely nothing for their broadband, many more continue to shell out for "free" connection. More than half a million people have signed up recently for internet deals that come as part of a package; they are still billed every month for other services, usually phone calls.

One provider, TalkTalk (part of Carphone Warehouse), persuaded 340,000 customers to buy into its free deal in the first eight weeks after its launch in early April. But three months on, some customers may be concerned that they have moved too fast, grabbing the first deal on offer.

While Orange is so far the only rival to offer a free broadband deal, BT has stepped into the arena with a different sort of offer, the Home Hub (see below). Sky and Vodafone are preparing to join the fray, most likely before the end of the summer. Sky is expected to entice consumers with free broadband when they take one of its premium TV packages.

"This is good news for consumers, as the competition is driving down prices," says Chris Williams of the price comparison and switching website uswitch .com. "But customers should make sure that a deal is right for them rather than simply being swayed by headline prices."

Around 8.5 million people in the UK are connected to broadband now, so there is still plenty of room for more competition in the market.

Below, we scrutinise the pros and cons of the most popular broadband deals.

TalkTalk

To get free broadband you have to sign up to the Talk3 International Plan for 18 months, paying a one-off £29.99 connection charge. You then pay £11 landline rental and £9.99 a month (a total of £20.99 a month) for unlimited local and national landline calls and unlimited international calls to 28 countries.

The broadband is fast at 8Mb, allowing you to watch videos and play games; the monthly download allowance is big, 40GB (letting you get your hands on plenty of music and films), although it is subject to some restrictions.

You will need a BT landline, but TalkTalk's deal is so far only available to 70 per cent of the country (visit www.talktalk.co.uk to see if you are covered).

There are also limits on the "unlimited" telephone calls. If any last longer than 70 minutes, charges will apply - 0.9p a minute for national calls off-peak, or 2.7p a minute in peak time. But to avoid these, all you have to do is hang up after 69 minutes and dial again.

Finally, if you want to quit TalkTalk's deal before the end of your 18-month contract, you will be charged a penalty of up to £70.

Orange

To get Orange's free Broadband Plus deal, you have to sign up for an 18-month mobile phone plan costing at least £30 a month. (Even existing customers have to sign new 18-month contracts to qualify.)

You get 8Mb broadband speed, free evening and weekend calls to local and national numbers, and wireless connection for up to six computers in your home.

Free landline calls are made by connecting a regular landline handset through a modem router called the Livebox, which Orange will lend you. You must have a BT landline and continue to pay £11-a-month rental on this.

The deal is available to 99 per cent of homes that have a BT landline, but the speed will depend on where you live.

Downloading limits are set at 2GB, much lower than TalkTalk's but enough to surf for 280 hours, send 2,500 emails and listen to 70 music tracks a month.

If you spend less than £30 a month, the monthly charge is £17.99.

BT

BT's broadband doesn't claim to be free at all. To qualify for what it calls its Home Hub, you need to sign up for Options 2 or 3 on its 18-month wireless deals. Home Hub will eventually offer much more than just phone and broadband, with services such as interactive TV. Today, it comes with free virus protection; users can also have a video phone installed. The broadband is fast at up to 8Mb, with 40GB a month downloading allowed.

Option 2 costs £14.99 a month for the first three months, rising to £22.99 after that. Option 3 starts at £22.99 a month for three months; you then pay £26.99 a month. And as always, you'll pay monthly line rental of £11.

Virgin

BT, Orange and TalkTalk all tie customers into a lengthy contract. But a year and a half is a lifetime in the fiercely competitive world of telecommunications. This is where Virgin comes in. Its deal is not as competitive as rival offers, but there is no contract: switch away inside 12 months and you'll pay a one-off £50 penalty.

Virgin charges £24.99 a month for 8Mb broadband with unlimited downloads, or £17.99 when downloads are capped at 6GB a month.