Consumers reluctant to give up broadband

Despite the economic downturn, nine in ten people want to keep their broadband connection because they see it as a necessity rather than a luxury, according to Plusnet.

The internet service provider (ISP) commissioned a Yougov survey of 15 million broadband users in the UK to see which areas they would cut back on as the financial squeeze tightens.

Only three per cent of broadband users said they would give up their connection to economise.

Nearly five million (30 per cent) would rather give up magazine subscriptions, cigarettes and alcohol than their broadband.

Others (14 per cent) would tighten their belts by cutting back on eating out or takeaway meals and 12 per cent would give up going to the cinema.

However, of those people who are reluctant to give up broadband, only around six in ten said they would stick with their current supplier or tariff; nearly four in ten said if the credit crunch continues they will be looking for better deals and be prepared to switch to get this.

Only three per cent of the 15.3 million broadband subscribers in Britain are planning to give up their connection to economise, an indication of how important broadband has become to the nation.

Neil Armstrong, Plusnet’s products director, said: “Broadband is now so popular and central to the daily life of Britain that few consumers are ready to end their internet connection completely to make ends meet. Some are ready to switch suppliers to help with their household budgets but they still want to keep broadband."

Indeed, far from cutting back on their internet use, people are turning to it to beat the downturn by looking for better deals online. Around six in ten (59 per cent) are logging on to price comparison websites and nearly five in ten (46 per cent) are paying bills online to get discounts.

E-commerce is also getting a boost with 45 per cent of consumers buying goods online to get cheaper deals. Internet auctions are also regaining popularity with financially strapped consumers, with 35 per cent saying they were looking for bargains here. One in three of the respondents said they had taken to reading the news on their computers rather than buying a newspaper.

Mr Armstrong said the survey showed that “millions of people are using the power of the web to shop smartly and hunt down better-value goods and services”. He said the ISP was now launching a new broadband and home phone package aimed at helping those feeling the pinch.

The £16.99-per-month service has been designed so people can add additional download limits if they wish "so that you only pay for the broadband service you need. It is our response to the economic slowdown," said Plusnet.

The new Plusnet Essential package includes a 1GB download limit, home phone line rental and free UK landline calls at the weekend. A download calculator lets users know if they are approaching their limit. Additional usage can then be bought for £1 per GB in advance or £1.25 per GB after. All of Plusnet’s broadband usage between midnight and 8am is free, so customers don't eat into their allowance during this time.