When you're shopping for a new broadband deal one of the main things you will need to decide is what length of contract you want to sign up for. In most cases this means a choice between a 12 month, 18 month or a maximum two year deal. But there is another option: the short-term plan.
Some broadband suppliers offer 30-day deals that come without a contract. They work more like a subscription service - it automatically renews each month, then when you no longer need it you just cancel and move on.
Not every provider offers these kinds of deals. In fact, most don't. But they aren't just limited to niche suppliers and you can find them at a whole range of speeds.
They aren't right for everyone, so let's take a look at the advantages and disadvantages of short-term and no-contract broadband.
Benefits of no-contract broadband
The main benefit to no-contract broadband is that it gives you the ultimate flexibility - no strings, no long-term commitment.
This makes it ideal for anyone who is not in a position to sign up for a long contract, such as those living in a short-term let or student housing. Students, for instance, will only be living in their digs for nine or ten months, so even a 12 month deal might not be ideal, let alone anything longer.
The same applies if you're planning to move house. While it's easy enough to take your broadband with you when you move, you do still have to move somewhere where your broadband provider is both available and delivers good performance. If either of those things aren't true, too bad. So if you're moving soon and your current broadband is coming to an end, you might be better off taking a 30-day deal for now, and then buying a new plan from scratch when you settle in to your new home.
Because there's no contract with a short-term broadband deal, there are no penalties when you decide to cancel and switch providers. You can do it any time you like.
No-contract deals also make it easier to upgrade if your needs change, or if better services become available in your area. While providers will be happy to let you upgrade to a faster plan before your contract is up - if you sign a new deal - you can't switch to a different provider without paying a penalty.
If you're waiting for faster technologies to be rolled out where you live, a short-term deal could be just the thing in the meantime. And to make sure you're fully up to date with what broadband services are available in your area, sign up to our free Broadband Autopilot service. It constantly scans for the best and fastest deals you can get, so you'll never miss out.
One final thing to note about short-term broadband is that even though the contracts are different, the performance isn't. Whether you're choosing a basic fibre-to-the-cabinet deal or a cutting edge full fibre service, the speed and everything else will be exactly the same as it would be if you'd signed up for two years.
Downsides to short-term broadband
There are some downsides to choosing broadband without a contract, the main one being that you will have to pay a little more than you would for a comparable long-term deal. Typically, you can expect to pay around £5 to £10 a month extra compared to the lowest price alternatives. And while this can add up over time, remember that most short-term deals aren't really intended for long-term use anyway.
You'll also have to pay a higher setup fee, sometimes as much as £60. This covers the activation fee and the router that you'll be sent to get online.
The best thing you can do before you sign up is to ignore the monthly price and calculate the total price you'll pay instead. So, if you want the service for nine months, work out how much that will cost, factoring in the monthly payments and the setup fees. Then compare it to the total price you'd pay on a 12-month contract. This can easily cancel out a lot of the price difference.
Other downsides to short-term broadband? You get less choice, inevitably, although there are some big name providers and even gigabit options that you can choose from. And you also miss out on any introductory offers like free gifts, bill credit, shopping vouchers and so on.
Which providers offer short-term deals?
There are a number of providers that offer broadband on one month deals. They include NOW Broadband and Virgin Media, while Cuckoo is a new provider that only offers a single, contract-free plan. Some full fibre providers like Hyperoptic also let you sign up to a rolling 30-day service, if it's available where you are.
If you think no-contract broadband might be right for you, or you want to see what else is available, use our postcode checker to find the best broadband deals you can get right now where you live.
Posted by Andy Betts on in FeaturesVirgin MediaHyperopticNOW BroadbandCuckoo