Your guide to broadband with no upfront cost
Dan Howdle
One of the most common ways that broadband companies incentivise their offers for new customers is by offering broadband with no setup fees. This usually means that you won’t pay for things like equipment or delivery, and that your new broadband service will be installed or activated free of charge.
It used to be that broadband with no set-up costs was quite a rare find. This was because when the UK transitioned from old-fashioned ADSL (standard broadband of around 11Mbps average), upgrading to fibre meant an engineer visit, usually to your house, but always to switch connect your line at the street cabinet. Those days are gone, and even with the advent of Full Fibre, broadband deals with no setup cost are fairly commonplace.
Now it's simply a case of most of the big providers waive the setup fee, sometimes just at certain times throughout the year, and sometimes always. And because some providers are doing it, others have had to follow suit to stay competitive.
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What is no upfront cost broadband?
Broadband installation typically costs broadband providers money in terms of the time spent setting up your connection, whether that's installing a new line, upgrading your line to fibre, or indeed to Full Fibre. And although charging a hefty upfront fee is going out of fashion, there are a number of different types of cost that make up the upfront fee when they do. They are:
- Router postage fee: As the description suggests, when a provider has to send you your new router via a courier, there is a cost to the provider, and this is sometimes passed onto new customers as a router postage fee. Typically this is less than £10
- Refundable upfront fee: Providers will sometimes charge a small amount to your credit or debit card when you sign up, but then refund to you in your first month's bill. At the time of writing, Sky currently charges £5 upfront, but it's refunded. This is mostly just a security check
- Connection charge: If you're upgrading to fibre or Full Fibre, sometimes providers will charge you a connection fee. This is usually between £20 and £40, depending on the provider and covers the cost of the technician visiting your property, the cabinet in the street or both
- No-contract charge: Some providers such as NOW Broadband and Virgin Media offer one-month contract broadband deals that allow you to back out any time. Providers therefore have to cover the cost to them for getting you set up and sending you a router, in case you're only with them for a month. These charges can be steep – anything up to around £70
- New line setup fee: In some very rare instances, it's necessary to install a new phone line where either one doesn't exist or where the existing line is unfit for purpose (old and degraded). New line setup fees are typically £50 to £70
Note that many of these types of setup cost won't apply to most people. Indeed, most new customers will find they're not charged anything at all up front, but it's good to know what you could be charged, especially if you're in an unusual situation like moving to an isolated barn conversion or in need of a one-month contract.
Understanding hidden costs in your broadband contract
The very existence of Ofcom, the telecoms regulator, is largely because media and telecommunications companies will try to get away with whatever they think they can. So Ofcom has to make and constantly revise the rules, which providers try new tactics to dodge them. The primary way you're going to get hit with fees you perhaps didn't expect is when providers hide costs in your contract – which almost no one takes the time to read.
Here are some of the types of fees you could be charged over and above the advertised monthly cost. For many, none of these will apply. However, it's good to be aware of them – they tend to be fairly universal among providers:
- Equipment rental fees: You won't find any charges for rental of the equipment (router, and potentially TV box), in your typical package. However, some providers offer upgrade options where instead of paying a one-off cost, you'll pay an additional monthly fee. The most common of these is a 'complete home wifi' system such as Sky Wi-Fi Max, BT Complete Wi-Fi and so on. The provider will give you a better router and/or range extenders in these instances, and you will pay an additional monthly fee
- Early termination fees: If you're tied into, for example, an 18-month contract and you need to back out after a year, you will be liable to pay off the remaining six months as a lump sum. When you sign up to a broadband contract you are contractually obliged to pay till it ends, whether you leave early or not, and this applies even if you move and cannot get your services in your new home. It's a harsh rule, and a good one to be well aware of
- Connection charge: If you're upgrading to fibre or Full Fibre, sometimes providers will charge you a connection fee. This is usually between £20 and £40, depending on the provider and covers the cost of the technician visiting your property, the cabinet in the street or both
- Broadband price rises: Providers currently raise their prices every year on April 1. The typical rise is RPI inflation, plus 3.9%. This year (2024) most rises are around 8% therefore. Price rises often don't apply for new customers, so if you got your broadband deal within a few months before April 1, it's unlikely you'll see a price rise. However, almost all broadband customers will see their bills rising at some point during their contract
What type of broadband comes with free installation?
In the past, broadband with free installation was generally with standard/ADSL packages, running on existing BT copper phone lines. Today, however, you're just as likely to find no-fee fibre broadband packages depending on what each provider is promoting at the time. And right now, since providers are keen to get customers moved onto Full Fibre if they can get it, most are offering the upgrade without any fees.
To help determine what broadband speed is right for your needs, read our guide.
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