In a sign of the times, Internet service provider Plusnet has announced plans to reduce its minimum contract term from 18 months to 12 months as UK consumers continue to demand more and more flexible Internet deals. This is a subject which has already arisen in the mobile broadband market where pay-as-you-go contracts are now commonplace with more and more people looking to experience mobile broadband without the need to sign-up for potentially 12 months plus.
Even though we have seen some reductions in the price of UK broadband packages over the last few months there are many people who believe that the reduction in contract terms will at some stage see broadband prices increasing in the UK. Indeed, as we have mentioned on numerous occasions, the additional investment required to upgrade and expand the UK broadband network will need to come from UK consumers and UK taxpayers.
There is also some concern that the market could be restricted if the smaller ISPs find difficulty in funding their own development and need to become part of larger groups or indeed go out of business. This is no doubt something which the likes of BSkyB Broadband, Virgin Broadband and the other major broadband companies will make use of.