Broadband now cheaper than dial-up

Broadband internet access is now cheaper than dial-up for almost all users, a survey has found.

Analysis conducted by price comparison site Simply Switch found that the cost of per-minute telephone calls means that anyone using the internet for more than a few hours per month is likely to benefit from becoming a broadband user.

The company says that dial-up services are "effectively being priced out of the market" due to the rising number of people on broadband. Some 40 per cent of British households now have a broadband internet connection.

A call to an 0844 or 0845 number - the numbers used by dial-up ISPs - cost up to 4p per minute depending on the user's talk plan. According to Simply Switch, a user spending just two hours per week online on such a plan would pay more than if they were on a basic broadband contract.

Even dial-up users who pay a flat fee per month would benefit from switching to broadband, the research found. Tiscali's pay-monthly dial-up plan costs £14.99 per month, while its basic broadband is £2 cheaper. Telewest or NTL dial-up users will save £4.99 a month by switching to broadband.