Pros and Cons of no-contract broadband deals
No-contract broadband is a great option for many consumers, but it does bring some disadvantages as well.
In the last decade, we’ve seen many attempts by retailers and service providers to maximise profits or absorb the soaring costs of everything from raw materials to staffing.
Some of these approaches have involved straightforward price rises, while more underhand strategies like shrinkflation and ingredient substitution have also increased in prominence.
Another technique for disguising up-front cost involves lengthening overall contract terms, with everything from car leases to smartphone contracts slowly becoming lengthier on average.
The same has happened to home broadband provision, where one-year contracts used to be the norm.
In the 2010s, 18-month contracts rose to prominence. And today, over a third of the packages advertised here on BroadbandDeals.co.uk involve a two-year contract period.
That’s fine if you’re confident your circumstances won’t materially change between now and late 2027, with no prospect of a house move or a career break.
However, if your circumstances are less set in stone, committing to any service contract for 24 months resembles a risk.
In such circumstances, it’s easy to see the appeal of no-contract broadband, which enables consumers to enjoy internet access without ongoing commitments.
These rolling one-month agreements offer a few compelling benefits, yet they also pose some potentially significant drawbacks.
Three advantages of no-contract broadband…
1. Freedom.
If you might be moving house, changing flatmates or enduring a pronounced drop in income over the next two years, no-contract deals spare you from trying to cancel a home broadband contract.
They also let you trial different ISPs before committing to one, testing their service and reliability, especially across Openreach lines which rival providers could also use.
2. Financial certainty.
Even with the new pounds-and-pence mid-contract price rise rules in place, the broadband contact you enter today might have a markedly different monthly cost in a year’s time.
On a rolling contract, your starting price is baked in. And if the ISP does announce price rises, you just leave at the end of your current 30-day period with no questions asked.
3. Simplicity.
It’s easy to become confused by the plethora of introductory discounts, triple and quad-play contracts and other accoutrements promoted by ISPs.
Conversely, no-contract deals tend to be no-frills. They can offer the same line speeds as other ADSL or full-fibre broadband services, without as many add-ons or tie-ins.
…And three drawbacks
1. Limited choice.
The number of rolling 30-day contract deals listed on BroadbandDeals is usually less than five per cent of our total offering, reflecting the relatively niche status of these packages.
It tends to be smaller ISPs offering no-contract deals – brands like BeFibre, brsk and Hey Broadband – which might deter people who’d rather entrust their business to a leading brand.
2. Cost.
From an ISP’s perspective, a 30-day broadband contract is relatively cost-inefficient, particularly if there are no setup charges. As a result, monthly bills are invariably higher.
That’s less of an issue if you really are planning to leave after a couple of months, but it becomes financially inefficient if you end up staying with that provider for a while.
3. Administration.
Setting up a new broadband contract is easier than it’s ever been, especially in the age of one-touch switching. Yet it still requires approval, hardware supply, setting up payment mandates…
Again, this becomes more of an issue if you’re having to go through the same process regularly, as opposed to the set-up-and-leave nature of long-term broadband contracts.
