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Sky just launched the cheapest broadband deal in the country – here’s what I think

Thursday, August 31st 2017 by Dan Howdle
With most budget providers in the UK fighting over a few pennies either side of the 19 quid a month mark, Sky has done something completely unprecedented – it’s knocked its entry-level 17Mbps ADSL broadband service down to £15 per month, including line rental. That. Is. In. Sane.

Thanks to a combination of factors, including failing to singularly attain Champions League and Premier League broadcasting rights – now shared with BT – Sky hasn’t been gaining customers a swiftly as it once did. So said Sky’s reported financials back in April of this year.

So what is this then? Sky surely can’t be making a profit from this? It must, in fact, be making a loss. One thing I can tell you, however, is that the majority of customers have a tendency to stick once they’ve reached the end of their contract, so the loss Sky will be making here will be viewed as an investment from Sky’s perspective.

Here’s the deal, and I’ve included Sky’s other basic broadband package speeds (with no TV) for comparison. They all have five quid off their monthly price right now, but obviously, it’s at its cheapest end where that fiver counts for the largest percentage of the entire monthly premium, and indeed where is makes the most difference.

  • Sky Unlimited Broadband

    Sky
    • Pay set-up cost today
    • Free Sky Q Hub router
    Free £50 Prepaid MasterCard
    £18
    £19.95 set-up cost includes line rental See Deal
  • Sky Fibre Broadband Unlimited

    Sky
    • Pay set-up cost today
    • Free Sky Q Hub router
    Free £50 Prepaid MasterCard
    £25
    £29.95 set-up cost includes line rental See Deal
  • Sky Fibre Max Broadband

    Sky
    • Pay set-up cost today
    • Free Sky Q Hub router
    Free £50 Prepaid MasterCard
    £30
    £29.95 set-up cost includes line rental See Deal

I have almost nothing to add to this, other than to say that broadband has literally never been this cheap before.

If you do choose to switch, you’ll need to make sure you’re no longer in the middle of your current contract. Not much point in saving a bunch each month if you’ll have to pay hundreds to get out your existing contract.

Not least because this is a 12-month contract and it is all but certain that your premiums will go up significantly after that first year. The other big question is one of speed. Is 17Mbps going to be fast enough for your household? The answer, is ‘probably’.

You can do a lot more with 17Mbps than most providers would have you believe. It’s plenty for streaming movies in HD, with lots to spare for other tasks. It may not be enough if you have a busy household full of multiple concurrent video streamers/downloaders, though.

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Dan Howdle, Cable.co.uk

Dan Howdle is Cable.co.uk’s resident telecoms expert. Dan appears regularly in the UK press to talk about issues faced by UK consumers on matters of broadband, TV and mobile, and has appeared on BBC Breakfast, ITV News, Sky News, and on a number of BBC and non-BBC UK radio stations. If you have a question for Dan, you can email him at expert@cable.co.uk.

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