In September 2005 a process known as "local loop unbundling" (LLU) started in the UK. The process, which was instigated by the regulator, required BT to allow competing companies to install their own equipment in BT telephone exchanges. This means that they do not have to sell-on BT's wholesale broadband service and can therefore offer very competitive prices. The result has been nothing short of extraordinary.

There are now over 6 million "unbundled" phone lines with about 30 different companies providing broadband services to households and businesses. As Ofcom Chief Executive Ed Richards notes: "In just four years, unbundling has gone from a flicker on the dial to a major competitive force in telecoms....This has delivered the dual benefits of driving up broadband take-up and driving down prices."

The downward pressure on broadband prices has been enormous. In September 2005, the average cost of broadband over a copper home phone line was £23.30 per month, but today it is only £13.61 for an equivalent service. This is a whopping 42% reduction and directly results from the competition unleashed by the LLU process.

TalkTalk was one of the first companies to take advantage of LLU and sent shockwaves through the market with their "free" broadband offer (when you bought a home phone call package) in April 2006. Since then, a host of companies have sharpened their pencils, to drive down the cost of their broadband services.

As a result you can now buy broadband and phone bundles starting from as little as £6 per month (excluding line rental). The digital TV providers have got in on the act too. Sky for example offers free broadband for Sky TV subscribers who also take a Sky Talk calls plan.

Recent research from broadband and digital TV comparison service simplifydigital.co.uk shows that many consumers are still failing to take advantage of the potential savings. Their research shows that those who bundle their digital TV, broadband and home phone services from a single provider save an average of £360 per year. So called "triple play" packages start from around £20 per month for all three services. Sky, Virgin Media, BT and Tiscali all have great value triple play bundles. Virgin Media's entry level bundle is just £14 per month (excluding line rental) and Sky's is just £16.50 (excluding line rental).

New deals launch almost every day, so it is vital to check that you are on the best broadband deal, remember deals vary widely by postcode.

About Simplifydigital
Simplifydigital.co.uk offers a unique service in the UK, providing a free and impartial consultation for anyone looking to save money and compare broadband, compare digital TV, or compare home phone services.

Simplifydigital cuts through the confusion; offers the widest range of digital service providers available (including Sky, Virgin Media, TalkTalk, AOL, Orange, 02, Top UpTV etc); and manages the customer through the install of the services.




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