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Fiver for fibre: does BT’s £5/month Infinity 1 deal add up?

BT has announced a rock-bottom £5/month introductory rate for its up-to-38Mbps Infinity 1 fibre broadband, but with a paltry 20GB limit.

You can top up at a pricey £5.30 per 5GB – and after six months, the tariff will revert to £15/month plus line rental – so how does it line up against the competition for FTTC (fibre to the cabinet)?

Sky currently offers 38Mbps fibre broadband with unlimited downloads at £10/month, while Plusnet also offers an unlimited deal for £7.50/month. Over a year period, BT will set you back £120 – the same as Sky’s unlimited deal and £30 more than Plusnet’s £90.

BT's Infinity 1 package may save you pennies, but it's not the most competitive deal out there
BT’s Infinity 1 package may save you pennies, but it’s not the most competitive deal out there

BT’s deal also includes weekend calls to UK landlines, unlimited BT Wi-Fi services, free line connection and a BT Home Hub 5. New customers will also be able to claim a £125 Sainsbury’s voucher when they sign up to the arrangement within the next week.

The deal also brings BT Sport via broadband, and a BT fibre connection makes it available in HD through the BT TV service on a YouView box.

A note to investors by Berenberg Bank analyst Barry Zeitoune said: “BT is in a sweet spot. After years of underperformance, it is using fibre and BT Sport to gain share in a market that is increasing pricing – which largely looks sustainable.”

This is reflected in the latest market share figures that show BT’s broadband share has grown to 64 per cent of the broadband market in the last quarter, taking on 104,000 new broadband customers, but its TV sign ups slowed, adding just 40,000 new customers in the quarter compared to its previous high of 70,000.

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