Should I consider no-contract broadband?
Signing up to no-contract broadband frees you from long-term commitments, but it does involve some compromises
In some respects, contract length is the most important aspect of any new broadband agreement.
We list contract length as the third filter criteria on BroadbandDeals.co.uk, immediately below connection type and line speed.
However, most people won’t consider the practicalities of a one-year contract versus a two-year one – let alone the idea of broadband as a short-term provision.
We offer the option to search for one-month rolling contracts, also known as no-contract broadband, though it’s always been a niche choice.
It has some notable drawbacks, but also a few compelling benefits.
Read on to discover whether no-contract broadband could be a practical and cost-effective solution in your household…
Is it really contract-free?
Technically, you’re still entering into a contract with an ISP.
However, where the other contracts we advertise here cover a period of 12, 18 or 24 months, no-contract broadband is far more flexible.
In effect, you’re entering into a series of rolling one-month commitments with an ISP. Either of you can withdraw from the contract at the end of the month, with no penalties.
ISPs will almost always be happy to maintain rolling contracts. It’s consumers who get the most benefit from these short-term contracts, which are far easier to get out of.
What are the benefits?
There are various scenarios where rolling one-month contracts might be preferable to signing a long-term ISP agreement:
- Students moving into a shared property for one academic year – typically eight or nine months rather than a full calendar year.
- Couples moving in together for the first time, keen to explore cohabiting but reluctant to sign long-term financial commitments.
- Short-term tenants, including seconded employees, temporary overseas workers and families bridging the sale of one property with the purchase of another.
- Households with volatile finances, such as freelancers or people whose income fluctuates substantially from month to month.
- Holiday home owners, obligated to offer broadband to guests in high season yet potentially seeing properties lying empty through the winter.
What are the drawbacks?
The biggest issue is cost. A dozen one-month rolling contracts will cost significantly more than a one-year up-front commitment, because the ISP is less confident of long-term custom.
Setup fees may be higher than in longer-term contracts, while you might have to pay to receive a broadband router.
Even if it’s provided free of charge, the hassle of returning one after a few months and requesting another shouldn’t be overlooked.
There’s little opportunity to get to know and trust your provider, with many consumers welcoming the reassurance of dealing with a familiar company over a long-term period.
ISPs offering one-month rolling contracts are unlikely to bundle in the sort of incentives and freebies as one or two-year providers, and there are no triple-play packages on offer.
There’s also less choice. Although we currently have dozens of no-contract deals listed, a limited number of ISPs are active in this market, and few of them are household-name brands.
Even so, they offer line speeds ranging from FTTC to full fibre, while you can also expect symmetrical upload/download speeds and the latest generation of wireless routers.
Costs are unlikely to increase any more quickly than they would on a standard 12, 18 or 24-month broadband contract, and you can easily leave if costs do begin to climb.
It’s a personal decision whether rolling contracts are more practical or cost-effective than a cut-price one-year deal – but they’re a useful option to have.
