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Broadband costs boosted by value-added services

23 November 2011 15:52:50

Services such as VoIP are often included in broadband deals. image
Services such as VoIP are often included in broadband deals.
Internet users should bear in mind that their subscription charge may be inflated as a result of value-added services such as security packages, new figures suggest. Research by broadband analyst firm Point Topic has revealed that these add-ons generate billions of pounds for internet service providers every year. The figures also highlight the need for internet users to compare broadband deals carefully to ensure they are not paying extra for services they do not need.

37% of broadband costs due to add-ons
Point Topic's latest research indicates that value-added services, such as security, voice over IP (VoIP) and IPTV, increased the average basic broadband subscription by almost 37% in 2010. Analysts studied the global broadband market and calculated that the average monthly broadband subscription charge was approximately $28 (£18), $10.20 (£6.55) of which was generated by the inclusion of add-ons. This means that, overall, revenues from value-added services totalled almost $60bn (£39bn) last year, compared with $49bn (£31bn) in 2009.

John Bosnell, senior analyst at Point Topic, revealed: "The trend we've observed since 2003 reflects the fact that more people are doing more things via their broadband connection. We estimate that at the end of 2010 each broadband line supported an average of 1.95 value-added services. That's almost four times the average in 2003."

Consumers urged to compare broadband deals
While many people make use of these additional services, some may find themselves paying for add-ons they do not need or want. In addition, with British households struggling to make ends meet, many consumers are looking for all possible ways to save money. For this reason, customers whose subscription includes services that they do not use may want to compare broadband deals to see if they could save money by switching provider.ADNFCR-2196-ID-801219382-ADNFCR ADNFCR-2196-ID-19464191-ADNFCR

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