First Utility undercuts prices to enter home broadband market

Wednesday, July 26th 2017

The largest independent energy supplier in the UK is under-cutting the Big Four broadband giants to make an entry into the home broadband market. First Utility is opening up to the wider market by undercutting home broadband prices, taking the challenge to the door of the Big Four broadband giants. They are offering a monthly broadband deal at £18.99 per month as a starter. The aggressive price cuts have positioned First Utility now along with some of the cheaper providers in the market. The company also offers in their packages unlimited usage, a free wireless router, a Disney Life subscription for 6 months, UK support and a free connection on an 18 month contract term.

The primary packages include the First Broadband, at £18.99 per month, at up to 17Mbps (downloads) on ADSL; the Super First Broadband, at £27.99 per month, at up to 38Mbps (downloads) on FTTC; and Ultrafast Broadband at £34.99 per month, up to 76Mbps (downloads) on FTTC. The new provider claims that unlike other providers, they'll not increase monthly charges at the end of the minimum period. So, after the 18 month contract ends, price is to remain the same. However, history shows most providers eventually have to succumb to rising cost of service and subject a price revision on existing customers at a later date.

Although the provider charges a one-off installation charge of £60, for a new phone installation, existing energy subscribers can benefit by an extra discount of up to £5, depending on their package choice and energy plan. Customers also get an add-on for £3 per month for free UK evening and weekend calls. However, it is £7 for anytime calls and an additional £5 for international calls, with some conditional benefits. It should be noted that First Utility services are based on the TalkTalk Wholesate platform, which is independent to TalkTalk's own ISP service for its subscribers.

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