Alternative network providers cannot sustain \u00a325 per month without rapidly losing moneyRising operational costs force smaller ISPs to consider higher monthly broadband billsAverage revenue per user must reach \u00a340 \u2014 \u00a345 for Altnets to break even<\/p>\n
Entry-level broadband pricing in the UK has remained relatively stable in recent quarters, with average tariffs for superfast services holding near \u00a331 per month.<\/p>\n
However, this stability masks a growing financial strain on alternative network providers that built their customer bases on discounts and low-cost full-fibre packages priced at around \u00a325 per month.<\/p>\n
<\/p>\n The core problem is simple: these providers are losing money on every \u00a325 subscriber because their operating costs per connection are significantly higher.<\/p>\n Article continues below <\/p>\n You may like<\/p>\n Pressure on alternative networks and pricing models<\/p>\n A report from PointTopic<\/a> claims current pricing structures across many internet service providers are under strain as operating costs continue to rise.<\/p>\n Veronica Speiser, Senior UK Plus Analyst, explains that smaller networks must raise average revenue per user to approximately \u00a345 just to break even, which means the era of ultra-cheap broadband is likely ending.<\/p>\n Alternative network providers have reported average revenue per user between \u00a325 and \u00a335 per month, while larger operators operate within a broader range of \u00a330 to \u00a350.<\/p>\n Speiser stated that “the current pricing models are not fully sustainable for many ISPs,” pointing directly to a gap between what subscribers pay and what it costs to serve them.<\/p>\n She believes that the difference in scale and infrastructure burden is a key reason smaller networks struggle with sustainability.<\/p>\n “The Altnet model is not sustainable and they will need to be bringing this up to around \u00a340 \u2014 \u00a345 per month to keep up with its current high operating costs per subscriber,” Speiser added.<\/p>\n This marks a shift away from earlier pricing strategies that relied on price freezes or no-contract increases.<\/p>\n What to read next<\/p>\n Total broadband connections in the UK reached approximately 28.96 million in the fourth quarter of 2025, with only limited growth compared to earlier periods.<\/p>\n Within this overall flat growth, full fibre adoption continued to expand to 12.39 million connections, whereas legacy technologies such as FTTC and DSL continued to decline.<\/p>\n Also, coverage increased to more than 80% of UK premises, with a rising number of locations served by multiple fibre networks.<\/p>\n Despite this expansion, subscriber growth has slowed significantly, meaning new customer additions no longer keep pace with infrastructure rollout.<\/p>\n This slowdown eliminates the volume-based strategy that many Altnets relied on to subsidize low prices.<\/p>\n Pricing differences remain visible across major providers and alternative networks, with some full fibre packages available below \u00a325 per month, while others exceed \u00a340 depending on service tiers.<\/p>\n Meanwhile, higher-priced legacy services persist, with some slower copper-based packages costing more than newer fibre alternatives.<\/p>\n Fixed wireless access remains a small segment of the market, accounting for around 1% of connections based on regulatory estimates.<\/p>\n This has not significantly altered the broader fixed broadband market landscape.<\/p>\n The path from \u00a325 to \u00a345 is not guaranteed for every customer, but the economic logic is inescapable for customers of smaller alternative networks.<\/p>\n The only real uncertainty is whether the increase happens through direct price rises, the disappearance of discount offers, or a wave of bankruptcies.<\/p>\n Follow TechRadar on Google News<\/a> and add us as a preferred source<\/a> to get our expert news, reviews, and opinion in your feeds. Make sure to click the Follow button!<\/p>\n And of course you can also follow TechRadar on TikTok<\/a> for news, reviews, unboxings in video form, and get regular updates from us on WhatsApp<\/a> too.<\/p>\n