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First Utility targets 'out of contract' broadband customers

Thursday, March 23rd 2017 by Phil Wilkinson-Jones

Energy provider First Utility has launched a broadband service and says it is ready to “unsettle” the UK’s biggest telecoms firms.

The company is targeting the 15m households it says are paying over the odds for broadband because they are out of contract with their provider.

It says the situation has strong parallels with the energy market, where 16m households are stuck on expensive out-of-contract plans.

First Utility is offering a choice of either standard ADSL or fibre broadband, but with prices that won’t increase when the contract ends.

Up to 17Mbps broadband is £18.99, up to 38Mbps is £31.99 and up to 76Mbps is £34.99, all with 18-month minimum term contracts.

Ed Kamm, First Utility’s UK managing director, said: “The parallels between the energy and telecoms markets are striking, with large swathes of households paying far too much for both services.

“We’ve proven that our approach of putting the customer in control results in more money in their pockets and we believe we can do the same with broadband.

“We’ve been successful in unsettling the Big Six in energy and our next target is the Big Four in broadband.”

First Utility isn’t the first energy provider to enter the broadband market. SSE, one of the so-called ‘big six’, has been offering broadband services since 2014 and last year topped a Cable.co.uk poll on customer satisfaction.

Utility Warehouse also bundles home phone and broadband services with mobile plans and energy tariffs.

First Utility said take-up of its broadband service has been strong since a 'soft launch' in November. It is currently still focussed on energy customers but expects to take on broadband-only customers later this year.

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