Direct Save Telecom, the low-cost no-frills ISP has reported a jump in customers over the last three months.
Over 3,000 customers have switched to Direct Save Telecom’s £1.95/month broadband offer in the last quarter.
The deal which includes unlimited monthly usage and a free wireless router requires you to pay £9.95/month for line rental and sign up for a 2-year contract.
CEO of Direct Save Telecom Stavros Tsolakis puts the recent surge down to increasing costs and compares his ISP to budget supermarket chain Aldi.
“Spiralling costs are causing all of us to tighten our belts, but for some reason the UK consumer is still wary of changing supplier no matter how much they will save. The commercial success of our £1.95 deal shows that this is slowly changing.
“If you compare broadband with supermarket shopping, people are going where they can get the best deals and save money. So the smaller independent ISP’s like Direct Save Telecom are now like Aldi. Maybe not as fashionable to shop in, but the quality is still high and the prices are much much lower.”
Direct Save Telecom reckons that if all of these customers had switched from a comparable BT unlimited broadband package (with the line rental saver option paid for up front), collectively, the 3,000 customers would have saved around £750,000 (£251 x 3,000) over two years.
Research from Direct Save Telecom suggests that as little as 16 per cent of UK consumers regularly switch their utility providers. Given the increasing costs of living in general and energy in particular, Tsolakis is hoping that this figure increases and more people turn to Direct Save.
As well as offering broadband for £1.95/month on a 24 month deal, those who don’t want to commit for so long can instead take out a rolling 30-day contract which costs £11.95/month plus £9.95 line rental. Though more expensive per month, the flexibility of this deal makes it an attractive offer for students.
Direct Save Telecom has also recently launched a £17/month family bundle deal.