- Average prices for most broadband and mobile services fell or remained flat year on year
- Gap between in-contract and out-of-contract prices narrows
- Half a million customers now signed up to broadband and mobile social tariffs
Average prices for fixed broadband and landline bundles have generally fallen in real terms between 2023 and 2024, with the fastest packages seeing the biggest drop, according to Ofcom’s annual pricing trends report.
Over the last year, average standard ‘list’ prices for ‘dual-play’ ultrafast (300 Mbit/s or more) and landline deals fell by 9% in real terms, while average discounted ‘promotional’ prices fell by 8%. Looking at superfast dual-play offers (30-299 Mbit/s), average list and promotional prices also dropped by 7% and 3% respectively.[1]
We also found that ultrafast broadband deals are frequently cheaper from smaller providers. Promotional prices for 900 Mbit/s to 1 Gbit/s broadband services from independent full-fibre network providers start at £26 per month. This compares to £39 per month for the cheapest similar service from a larger provider.
While today’s report shows that the prices of most telecoms services we look at have remained flat, or have fallen year on year in real terms, the average monthly spend for both dual-play and triple-play bundles increased by 8% in real terms year-on-year, as people migrate to higher-speed packages. Latest Ofcom data shows that the number of households signed up to full-fibre broadband services rose from 28% to 35% (7.5 million households) between May 2023 and July 2024.[2]
Out-of-contract customers could make significant savings
Many customers still in contract may be able to significantly reduce their bills by shopping around and signing up to a better deal – either from another provider, or by re-contracting with their current provider [3]. Our data shows that 36% of dual-play fixed broadband and landline customers and 32% of triple-play fixed broadband, landline and pay-TV customers were out-of-contract at the end of June 2024. Their bills were 18% and 16% higher respectively than in-contract customers.
Our analysis also reveals, however, that the gap between average standard list prices, which many out-of-contract customers pay, and promotional prices, which many in-contract customers typically pay, has started to narrow. For broadband and landline bundles, the gap fell from £8 per month to £7 between September 2023 and September 2024. The equivalent gap for broadband, landline and pay-TV bundles narrowed from £19 per month to £17 per month during the same period.
Mobile prices have fallen in real terms
Today’s report also reveals that the average price of a basket of mobile services reflecting the average person’s use was 5% lower in real terms in 2024 than in 2023 and 23% lower than in 2019 – despite average data use trebling over this period.
Average prices for all the SIM-only service categories we look at also fell year on year, by between 1% and 11%. Customers who buy a SIM-only plan and a handset separately pay around 25% or £200 less than customers on tariffs that include airtime and a handset.
UK telecoms prices generally compare well internationally
Among the six countries compared, the UK has the joint-lowest fixed broadband prices with Italy - coming in cheaper than France, Germany, Spain, and the US. The UK has the second-cheapest standalone mobile prices - higher than France, but lower than Germany, Italy, Spain, and the US.
Certainty for customers about future price rises
Falling inflation resulted in lower annual price rises in 2024 than in 2023 for in-contract customers. In line with changes to our rules to give more certainty to customers about the prices they will pay for their services, which apply from January 2025, providers have already started to offer contracts that include price rises set out upfront in pounds and pence. These price rises currently range from up to £1.80 per month for mobile services and up to £3.50 for fixed broadband.
Social tariff take-up surges to over 500,000, but many eligible customers still unaware
Social tariffs help ensure that fixed broadband and mobile services remain affordable to customers on low incomes in receipt of qualifying Government benefits. They’re priced between £12 and £23 a month for broadband and £10 to £12 a month for mobile - helping save broadband customers around £220 a year on average.
An estimated 1.9 million UK households with fixed broadband are struggling to afford their service [4], with more people turning to social tariffs to manage costs. Many providers responded positively to Ofcom’s calls to introduce these cheaper deals; in 2020, there were only three social tariffs available to customers, but now there are more than 30 to choose from. That means around 85% of fixed broadband homes are now able to access a social tariff, if eligible, without switching provider or incurring an early termination charge.
By June 2024, around 506,000 customers had taken advantage of these offers – an increase of 125,000 (33%) since September 2023. Despite this substantial growth, take-up of social tariffs remains low as a proportion of all eligible customers (9.6%). Our latest research also shows that 69% of eligible broadband customers are completely unaware of them. This indicates that communications providers still have a job to do to further raise awareness of this vital support.
Natalie Black CBE, Ofcom’s Group Director, Networks and Telecoms, said:
Today’s report shows that mobile and broadband services in the UK remain competitively priced and generally compare favourably to other countries. With significant savings to be had, especially for the fastest packages, it’s important as ever for customers to shop around.
It’s also encouraging to see more people taking advantage of the wider range of social tariffs now available, but with many more eligible customers unaware, there’s still a job for communications providers to do to further promote this vital support.
END
- All prices adjusted to take account of inflation. Promotional prices for new customers signing up to ‘triple-play’ ultrafast bundles (fixed broadband, landline and pay-TV) also saw a 3% decrease during the last year. However, equivalent promotional prices for superfast deals increased by 4%.[2] Looking at the longer-term trend over the last five years, average triple-play superfast promotional prices have decreased by 25%, while ultrafast promotional prices have dropped by 48%.
- Ofcom’s Connected Nations 2024 Report
- Under our rules, providers must alert customers when they are reaching the end of their contract and tell them what they could save by signing up to a new deal.
- Fieldwork was conducted between the 2nd and 8th October 2024 among 1,089 UK adults aged 18+. As fieldwork took place in first week of October, experiences largely reflect those in September. Our population estimate has an error margin of +/- 500,000.
