Is broadband keeping the home phone alive?

close up detail of a broadband modemLow-cost broadband deals are making headlines but when you factor in the hidden charge of landline connection are these deals as great as they seem.

Newspapers, TV, billboards – they’re all full of companies advertising their latest, price-crunching broadband deals.

Current offers include Sky from £5 a month, and Virgin and TalkTalk from £3.25. Yet, take a close look at the small print and you’ll soon see that these bargain broadband deals come at a cost – the cost of a landline connection.

And a landline or home phone connection doesn’t come cheap. Sky charge £12.25 a month, Virgin £13.90 and TalkTalk charge £13.80.

Indeed, industry regulator Ofcom has called landline rental the “hidden cost of broadband”.

The organisation’s Communications Market Report notes: “…a fixed line is required to receive broadband services and line rental is rarely included in headline prices.”

Fall in home phone ownership

So it’s easy to understand why consumers feel they’ve been had, when getting that bargain broadband deal involves spending money on landline services many don’t want.

Home phone ownership has fallen from 91 per cent of households in 2005 to 85 per cent currently, according to Ofcom.

The regulator describes 2010’s fall in home phone ownership as “the fastest rate of decline since connections began to decrease in 2002”.

But the fact that most homes need a landline connection to get online - because the same copper wires that deliver your telephone service are used to supply broadband - is responsible for keeping the home phone market alive.

Home phone ‘constraint’

Ofcom’s report states: “The requirement to have a fixed line for broadband acts as a constraint on households giving up their fixed phone.”

At present, the options for accessing the internet without a landline are limited.

Broadband-only options

Virgin Media offer standalone broadband through its cable network, although it also offers broadband and phone bundles. However, its cable network only covers half the UK so this option is not available to everyone.

Your other option is a mobile broadband connection via a dongle or a smartphone, but these connections are likely to be even more expensive than through a landline, even with the cost of rental included..

So, while a home phone remains a necessity for internet access, we round up the cheapest broadband and phone bundles.

Best buys

BT Broadband £3.50 for 6 months

Only £3.50 for 6 months and £13 a month thereafter. Up to 20Mb broadband speeds, includes wireless BT Home Hub, free evening and weekend calls to UK landlines. Extra benefits include free Wi-Fi minutes and discounts of up to 50 per cent on BT telephones. Hurry, this exclusive online only offer ends 20 September.

Orange broadband - free £60 M&S vouchers OR free HP Deskjet Printer

£5.00 per month for existing orange customers and £10.00 for non-orange customers. Unlimited broadband, 12 month contract, free connection, free wireless router and Unlimited Evening and weekend calls. Two for one cinema tickets with Orange Wednesdays and get one free movie download from iTunes every Thursday. Find the £60 M&S voucher offer here. Find the free HP Deskjet printer offer here.

TalkTalk 9 months half price Essentials and Plus broadband

Only £3.25 for nine months and £6.50 thereafter on Essentials, £7.25 for six months and £14.50 thereafter on Plus package. Free connection (usually £30) and free wireless router. Inclusive evening and weekend calls on Essentials or Anytime calls on Plus. Hurry, this deal ends 25 September.

Sky 6 months half price broadband and calls

From only £5 per month with unlimited downloads and unlimited evening and weekend calls. Hurry, this offer is time limited

Virgin Media 6 months half price broadband, phone and TV

From £10 per month for first six months, unlimited downloads, free installation worth £40 and free weekend calls. Get £60 off your first bill when you take calls, phone and TV. Hurry, this deal ends soon.

Virgin Media special student offer

Nine-month contract ideal for students, available for broadband and phone with or without TV. Free activation (usually £20) and free weekend calls. This offer ends soon.

Tesco broadband 4 months free plus 1000 Clubcard points

£8.00 per month thereafter, free connection, Tesco line rental required at £11.75 per month which includes unlimited evening and weekend calls. Offer ends soon. Must use promotional code 4MFCC-F.  Find more information here.

Primus exclusive - £6.79 line rental only

The cheapest standalone line rental in the UK is ideal for light users or customers who need a landline for broadband. Evening and weekend calls 1p per minute, daytime calls 6p per minute to UK landlines. Find this exclusive deal here.



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Naphtalia Loderick

Naphtalia Loderick

Naphtalia Loderick reports on all things personal finance at Confused.com. She started out on a weekly newspaper, via a national news agency and a stint in the fun but ‘not as glamorous as it appears on screen’ world of TV at the BBC researching consumer films for The One Show.

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