5 Hidden Truths Behind BT's Free Broadband Upgrade

BT announced that it will be offering free ADSL2+ upgrades to all users with up to download speeds set to increase from 8mbps to a staggering 20mbps. Is it the complete picture though? As always, the truth is somewhere in the middle as we investigate.

(1) A fraction of BT users will get the broadband upgrades

549 telephone exchanges which cover around 10 million UK homes and businesses will be upgraded and BT says that 40 percent of the population will get the new speed with that percentage rising to 55 percent by next year. The bottom line though is that the upgrades are likely to affect users that already have the widest broadband choices in terms of broadband providers. This is because BT, as a private company, will be looking to maximise its return on investment by tackling densely populated areas first.

(b) The broadband is not free per se

BT might say that the upgrade is free but looking at the small print and you will find that the upgrade requires that the customer signs for a new 12 or 24 months contract. It is not known whether customers have to sign a new contract BEFORE or as the upgrade is being done but it will tie customers into longer contracts, preventing them from switching to potentially more competitive offers.

(c) You are unlikely to get the 20mbps

because of the increased attenuation on ADSL2+, some users could even get lower speeds than on ADSL. Furthermore, the change to ADSL2+ may also require a new modem and the installation of the new BT iPlate which will be provided free. The other issue that has to be considered is the fact that the upgrades are done at the exchanges means that BT's copper network - the same that was used during the dial up era - is being pushed to its utmost limit. BT will be moving to fiber optic soon but the roll out is likely to be very targeted.