TalkTalk is cheap... but can money buy happiness?

On 11th April 2006, TalkTalk became the first telecommunications company to launch 'free' broadband, changing the communications market forever.

Broadbanders were quick to the take up with 340,000 customers signing up in the first 8 weeks alone, saving as much as £468 a year.

Now, as the first wave of TalkTalk 18 month contracts draws to an end, independent price comparison and switching service uSwitch.com explores the latest broadband options available.

Almost 18 months ago, TalkTalk turned the UK broadband market on its head by becoming the first company to offer 'free' broadband.

When launched, the attraction to consumers was simple.

This was the cheapest home telephone and broadband package on the market - £12 cheaper than its nearest competitor - with high speed capabilities and an unlimited international call package.

Orange quickly followed suit with its own version of 'free' broadband, with Sky following in July.

The new era of 'free' broadband revolutionised the home communications market forever.

However, with 340,000 people signing up to the 'free' broadband deal in the first eight weeks alone, TalkTalk was unable to keep up with the demand.

200,000 people were initially left without a live broadband service as they waited to be connected[4].

The company was publically scrutinised over service interruptions and delayed connections, prompting CEO Charles Dunstone at one stage to describe the ongoing problems as a "disturbing nightmare." Now nearly 18 months on, and after an additional customer service investment of £15 million, TalkTalk has assured customers that the queues have been eliminated, the quality of customer service agents has improved, and over 700,000 people are now successfully connected to the service.

Yet, while the latest uSwitch.com satisfaction poll places TalkTalk at the top of the league for Value for Money for its home phone, it is ranked second to bottom for overall customer satisfaction with its broadband service.

Nearly a third of its customers (31%) are not satisfied with the overall service they have received [6].

The poll suggests that 'free' does not necessarily buy happiness, and for those customers now wishing to move on, uSwitch.com highlights the three most important factors to consider.

1 - Price As testified by the mass of customers that signed up to 'free' broadband last year, price is a major factor when choosing a broadband service.

TalkTalk's 'free' broadband now comes at an even lower price than at launch - a clear sign that the price war is still alive and kicking.

Talk2 International with free broadband (8Mb) is just ?16.39 per month after a set up fee of £29.99 including free evening and weekend calls to UK landlines plus 36 international destinations anytime.

Those looking for a comparable 8Mb service can switch to Toucan 'up to 8Mb' for £25.49 per month, which includes free weekend calls to UK landlines, with no set up costs.

2 - Speed Understandably, we want to get as fast a speed as possible.

However, you can't always receive the speed you have signed up to, so it's important to use an online broadband speed checker.

If you can't get 8Mb in your home, don't sign up for it.

Those who can get speeds of 2Mb or slightly more should look at Tiscali's package, offering free line rental and weekend calls to UK landlines and 10 international destinations for £14.99 a month, after a £30 set up fee.

Virgin Media's Medium 2Mb package special offer costs just £15.50 a month after £25 for set up, with free line rental and weekend calls to UK landlines.

3 - Service Broadband has now become a 'life essential', so when things go wrong, they go badly wrong.

Customers need to be assured that they can rely on their broadband provider to fix any hitches.

With the UK spending £31 million on technical support in the last year, service is at the top of the agenda for many consumers.

Customers looking to be reassured of a good service should look to PlusNet, which topped the uSwitch.com satisfaction poll with 78% of customers satisfied with its service.

Broadband users can sign to its broadband and phone packages for as little as £20.99 a month[8] with free set up.

Those looking for a triple play deal should consider Sky, which came second in the poll with a 76% overall satisfaction rating.

Customers can get a Sky TV package with broadband and free evening and weekend calls to UK landlines for a monthly price of £26.50 plus £30 set up.

Steve Weller, Head of Communications Services at uSwitch.com comments: "Free broadband was a bold move from TalkTalk and was great news for the broadband market".

"It sparked a major price war that saw prices drop by 17% last year, and prices continue to fall".

""Consumers are entitled to the best of both worlds and should not have to choose between price and service.

However, while this remains the case, it's important that not only those on TalkTalk but the 7 million9 home phone and 6 million10 broadband customers who are likely to review their existing deal in the next 12 months do their research before entering into a new contract".

""TalkTalk's CEO was famously quoted as saying, 'if in a year's time it [customer service] is still as bad then people will just write us off'".

"It will be interesting to see how many will." For more information visit www.uSwitch.com or call 0800 093 06 07.

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