MONEY COMMENT
Get Cheaper High-Speed Internet

By Cliff D'Arcy
May 1, 2003

Earlier today, I read that Britain's two biggest cable companies, Telewest (LSE: TWT) and NTL (Nasdaq: NTLI), together have over a million customers with high-speed cable connections to the Internet. This growth has come at a high price, with both companies worth a tiny fraction of their values at the peak of the dotcom boom.

By this summer, BT (LSE: BT.A)(NYSE: BTY) aims to have a million customers using ADSL (Asymmetric Digital Subscriber Line; a fast, always-on digital line) to access the Internet. However, BT claims that it is still the clear market leader as, at 512kbps, its broadband ADSL service is ten times as fast as a standard 56k dial-up modem. On the other hand, some of NTL's broadband customers access the web at only 128k, which the Advertising Standards Authority does not define as broadband.

So, if you're thinking of upgrading to broadband at home (or switching to a cheaper or superior provider), where should you start?

Firstly, these days, most UK consumers expect broadband to mean access speeds of 512k and above, so I'd steer clear of slower services offering access at 128k or 256k. You can check to see if BT offers DSL in your area here; here are links to the Telewest and NTL products.

Secondly, you need to consider the contract you sign. You should check the following:

1. How long is the minimum contract term? Most providers require you to sign up to a minimum 12-month contract, so watch out for financial penalties for early termination.
2. How much does installation cost? You need to factor in the cost of a new USB modem if you don't have one (mine looks like a blue-green manta ray), plus the cost of upgrading your phone line to ADSL.
3. How much is the monthly charge? Trust me, once you've upgraded to broadband, you'll never want to go back to dial-up, so this will be your biggest cost long term!
4. Are there any other (non-standard) charges, such as expensive premium-rate helplines?

Okay, to create a basic benchmark, we'll ignore 128k and 256k packages. We'll also ignore super-speedy 1Mb and 2 Mb packages. This means that we're only looking at 512k (10x) packages.

This list shows how a dozen of the leading providers stack up (the biggest, plus the most highly praised, compiled with the help of ISP Review). Charges include VAT and P&P, where appropriate.

Provider, Product name, Minimum contract, Initial installation fee, Modem cost, Monthly charge, Any other charges

AOL, AOL Broadband, 12 months, free (was £70), £25 (was £95), £27.99pm

BT Openworld, Home 500 Plug & Go, 12 months, free (was 65), £50 (£10 discount online), £27pm, £1pm for payment other than by DD or Monthly Payment Plan

Clara.net, DSL Solo Self-Install, 6 months, £58.75, own modem, £29.99pm, filters £11.75 each

Demon Internet, Demon Express Total, 12 months, free (was £50), £85, £24.99pm, £50 installation if using own modem

Freedom2surf, ADSL 512k Home, 1 month, £59.99 (free for 12-month contract), £82.24, £22.50pm

Freeserve, Broadband, 12 months, free (was £65), £84.99, £27.99pm

One.tel, Unplugged 500, 12 months, £30, £29.99, £27.99pm, £1 if not paying by DD, filters £9.99 each

Plus.net, ADSL Home Standard, 12 months, £116.05, Free, £21.99pm

Telewest, Blueyonder Broadband, 12 months, £50 (£5 discount online), £25 for a Network Interface Card, £29.99pm (£25pm with phone service), £2pm if not paying by DD

Tiscali, Broadband Plus, 12 months, £35, free (was £58), £27pm

Virgin, Broadband, 1 month, free (was £58), £59.99, £24.99pm

Vispa, Home 500, 3 months, £58.75, £69.99, £28.99pm

Two last pieces of advice: when you've chosen a supplier, make a few calls to its customer service helplines to see if the service side matches up. Also, if you cancel your contract, you may lose your old e-mailbox. So, if you want to keep your old e-mail address active, ask your ISP to downgrade your contract to its free "pay as you go" service.

As for me, my 12-month contract is up and I'm off to find a new broadband supplier. I think I'll start with Virgin and Freedom2surf...

Finally, I'd be delighted to hear from technically minded Fools with more advice on getting more broadband (and spotting any errors in the above list, which took hours to research!). Please use the feedback link below.

Thanks to TMFTarantula for his technical support and advice.

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