Data released by Ofcom highlights significant savings opportunities for millions of phone, broadband and pay-TV customers across the UK, as competition intensifies and pricing trends shift in favour of consumers.
Ofcom’s annual pricing and consumer engagement report provides an analysis of the UK telecoms market, showing that while overall prices are falling in real terms, many households are still paying more than necessary by remaining out of contract, overpaying for unused services, or failing to switch providers.
Broadband Prices Fall as Full-Fibre Expands
Average broadband prices available in the market declined by 6 percent in real terms last year, particularly for faster services. Many households can now upgrade to full-fibre broadband and pay the same, or less, than they currently spend on older copper or part-fibre connections.
Around 80 percent of UK homes now have access to full-fibre broadband, following large-scale network rollouts by Openreach, Virgin Media O2 and a growing number of alternative network providers, commonly referred to as altnets.
According to Ofcom, increased competition between established operators and altnets has driven sharper pricing competition over the past year. Altnets frequently offer lower introductory pricing to attract customers, while larger providers have reduced their prices to narrow the gap.
Out-of-Contract Customers Paying More
Despite falling market prices, 28 percent of broadband customers remain out of contract. On average, in-contract customers pay between £7 and £9 less per month than those who are out of contract.
Although this price gap narrowed over the past year, most out-of-contract customers could still reduce their monthly spend by renegotiating with their current provider or signing up for a new deal.
Switching activity has also increased. In 2024, 18 percent of households changed their internet provider, up from 14 percent in 2023. The rise follows the launch of the One Touch Switch process in September 2024, which has already been used by more than 2 million customers, simplifying broadband switching.
SIM-Only Mobile Plans Gain Momentum
SIM-only plans now account for half of all pay-monthly mobile subscriptions, up from 44 percent a year earlier. Average prices for SIM-only plans with unlimited data dropped by 8 percent in real terms last year, with some deals available for under £5 per month.
However, Ofcom’s data suggests many consumers are overestimating their mobile data needs. Around 29 percent of pay-monthly users consume 2 GB of data or less each month. While 39 percent subscribe to plans offering more than 50 GB of data, only 5 percent use that volume.
More than half of pay-monthly customers use 20 percent or less of their monthly data allowance, indicating significant potential savings by switching to lower data tariffs.
The regulator also noted that the lowest mobile prices over the past four years have generally been offered by mobile virtual network operators or budget sub-brands of major mobile networks. These deals are typically between 40 percent and 50 percent cheaper than average market prices.
Landline and Bundle Savings Opportunities
Standalone broadband services have become increasingly popular as traditional landline usage declines. Last year, 70 percent of households purchasing broadband with a landline did not make a single outgoing call. Standalone broadband packages typically cost around £7 less per month than bundles that include a landline.
Bundled telecom services, however, can deliver substantial savings when customers actively choose competitive packages. Ofcom’s analysis shows that households bundling services together save between £26 and £48 per month compared to buying services separately.
Pay-TV pricing has seen particularly sharp reductions when bundled. The average contract price for pay-TV within a broadband and landline bundle fell by 23 percent in real terms last year to £12 per month.
Growth in Social Tariffs, But Awareness Gap Remains
Social tariffs for eligible low-income households now range from £12.50 to £24 per month for broadband services. The number of available social tariffs has expanded from just three in 2020 to more than 30 in 2025.
As of June 2025, 532,000 customers were using a social tariff, an increase of 26,000 compared to the previous year. However, 70 percent of eligible households remain unaware of these discounted packages.
Mid-Contract Price Rises Offset by Market Trends
While many telecom providers implement mid-contract price increases after introductory offers expire, Ofcom notes that consistent real-term price declines across the market mean consumers can maintain or even reduce long-term spending by regularly reviewing and renewing their contracts at competitive rates.
The report concludes that while UK telecoms markets remain competitive and prices are trending downward, millions of customers could unlock further savings by switching providers, renegotiating contracts, reviewing unused services, or selecting tariffs better aligned with their actual usage patterns.
BABURAJAN KIZHAKEDATH
