Virgin speeds up the broadband battle with promises of 50Mb

Last Updated: 12:27am GMT 14/02/2008

Communications provider shakes up sector by offering faster connections for the same price, writes Emma Lunn

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Virgin Media broadband customers will be able to get speeds of up to 50Mb by the end of the year, making it easier to download music and films. And on certain packages customers will see speeds double for no extra charge.


	Keyed up: customers now have a wealth of Broadband choices

Following trials in Kent last year, Virgin is upping its top speed from 20Mb to 50Mb. The company says the new speed will be available to more than 9m UK households by the end of 2008.

Meanwhile, at the end of this month, customers on Virgin Media's most expensive package – the "L" size – will be upgraded, taking their service from 4Mb to 10Mb while the price remains at £11.50 per month. On the new 10Mb service, a Virgin customer will be able to download a typical music track in just four seconds, an album in under a minute or a TV show in about five minutes.

The move reflects wider trends in the broadband market: speeds are increasing while prices are falling. As a result there has never been a better time to shop around for a new deal. However, experts warn that many providers - Virgin included - may not be able to deliver the top speeds that are advertised in many households.

Michael Phillips, product director at comparison website www.BroadbandChoices.co.uk, says: "It's great that Virgin is developing its network and actually benefiting customers without them having to shell out more money for the privilege, but we still need greater transparency from all providers on the speeds their customers routinely get, rather than advertising everincreasing 'top speeds' that are rarely delivered."

Broadband deals are advertised using these top speeds. Customers will pay more for a service offering up to 10Mb than one that offers a maximum speed of just 5Mb. But in reality the customer paying the higher fee may not be able to download data any quicker.

Research by BroadbandChoices and the magazine Computer Active found that 62 per cent of all broadband users are achieving less than 50 per cent of their advertised speed.

There are a number of factors that can affect download speeds, these include the quality of the phone line and the distance of the property from the telephone exchange. Computer Active's Crystal Clear Campaign aims to persuade communications regulator Ofcom to force broadband providers to make this clearer in contracts.

Rob Barnes, head of broadband at comparison site Moneysupermarket.com, says the Virgin upgrades could potentially shake up the pricing structure of the broadband market.

"What remains to be seen is whether Virgin can deliver on its promise of increased speeds," he says. "It would be a shame if customers are upgraded from 4Mb to 10Mb but only reach speeds of 5Mb."

But despite these hiccups, there is no doubt download speeds are still significantly faster than they were four years ago — and cheaper, too. Research by price comparison site uSwitch.com has found that in January 2004 customers could expect to pay an average of £27 a month for broadband with a standard speed of just 0.5Mb.

Today, the majority of users are signed up to a headline speed of 8Mb costing an average of £17 a month. Steve Weller, head of communications services at uSwitch, says broadband is now the cheapest and fastest it has ever been and that anyone not tied in to a contract should shop around. "We predict prices will stabilise, but customers will be offered more for their money, with companies continuing to increase speeds," he says.

"Broadband providers such as Be, O2 and Sky already offer speeds above the 8Mb 'standard'. Be offers broadband packages with speeds of up to 24Mb for a monthly cost of £18, only 81p more expensive than the average for 8Mb broadband."

If you have an O2 pay-monthly mobile phone you can get 8Mb broadband from the service provider for as little as £7.50 per month. Non-O2 customers will pay an extra £10 per month for the same service.

Other competitive deals at the moment include TalkTalk which charges £5.89 a month for up to 8Mb broadband and free evening and weekend phone calls. Customers also have to pay £10.50 a month TalkTalk line rental.

Other services require a BT line at £10.50 a month if paying by direct debit; Plusnet charges £9.99 per month for 8Mb broadband on a one-month contract, Pipex also costs £9.99 a month but you need to sign up for a year.

Madasafish charges £11.99 a month for the first six months then £16.99 after. You need to look at more than just the monthly cost of broadband: set-up costs, download limits and the cost of modems or wireless kits need to be considered.

All change: How to switch broadband provider

Since February 14 last year switching broadband providers has been both quicker and easier. New rules introduced by Ofcom made it compulsory for providers to supply customers with a Migration Authorisation Code (MAC) on request.

A MAC is a unique alphanumeric reference that enables customers to switch broadband provider smoothly and with minimal disruption.

To switch deals first decide which package you want. The easiest way is by using a comparison service such as uSwitch, or BroadbandChoices. The Daily Telegraph website also runs its own broadband pricing service.

What's available to you will depend on your postcode and which firms provide service in your area. Next, get a MAC code from your current provider and contact your new provider, giving them your MAC code and previous provider's details. The new provider should then contact BT and initiate the switch for you.

If you have a cable line from Virgin Media (which is now the only UK cable provider since it merged with Telewest and NTL) you are limited to taking broadband from Virgin unless you get a BT line installed.

Other broadband providers use BT's network so you will need a BT line. Some providers – namely Sky, Orange and TalkTalk – offer "free" broadband but these are all packaged deals that require customers to subscribe to another services such as home phone, digital TV or a mobile phone contract.

Others such as Virgin Media, BT and Tiscali offer "bundled" products where you pay one price each month for a package which includes broadband, phone calls and digital TV.

The Daily Telegraph Guide to Cutting Household Bills, in association with SimplySwitch, offers advice on how you could save money on your bills. For a free copies of the guide, call 0870 830 3428.