Press & PR

The falling costs of broadband reported recently may not be of benefit to consumers in the long term, one analyst claims.

Jupiter Research analyst Ian Fogg has told ComputerActive that the current low-price market may make internet service providers (ISPs) complacent about future developments to UK broadband infrastructure.

Mr Fogg argues that a number of customers are also being let down by broadband packages that fail to deliver on speed. It is known as the "up to" effect, where actual data transfer rates experienced fall a long way short of advertised speeds.

A recent poll by uSwitch found that broadband prices are lower than they have ever been. It also found that headline speeds have also increased considerably in the last five years as providers strive to support new services such as online video and VoIP.

Mr Fogg states that he expects costs to keep falling as ISPs fight to provide competitive prices. However, he argues that the high level of competition could mean that providers neglect upgrades to network infrastructure.

Ultimately, the consumer could pay the price, he argues.

A growing number of people are using broadband internet connections to make cheap calls at home and abroad.

Vonage's V-Plan 2 offers inclusive calls to 15 countries for just £7.99 a month.