Warning for 4.3million households who face £218 a year bill rise in big TV shake-up
MILLIONS of households face a £218 a year bill rise as part of a huge TV shake-up.
A new report has revealed that households currently reliant on terrestrial TV could face additional costs of £18.17 per month if forced to switch to internet-only TV.
Free-to-air, terrestrial broadcast TV, which millions watch daily using an aerial, is only secure until the early 2030s, when current licences expire, according to consultancy firm EY.
Some industry experts believe the government should actively phase out terrestrial TV to encourage a broader shift to online viewing which is provided solely via a broadband connection.
They argue that this approach is warranted, given that the share of total TV viewing via linear platforms (aerial and cable) has fallen below 50% for the first time.
And in a report released in May, regulator Ofcom said that broadcasters had “voiced concerns” about the commercial viability of maintaining the current terrestrial infrastructure beyond the mid-2030s.
However, EY said internet connections are generally less reliable than terrestrial TV, and millions remain disconnected.
The consultancy firm’s report estimates that in 2040, there will be 4.3million households without high-speed broadband.
A full switchover to internet-only TV viewing would cost £888million in additional annual fixed broadband subscription costs for these households who otherwise would not take it, equivalent to £18.17 per month per household, or £218 per year.
As well as the ongoing costs of a fixed broadband connection, millions of households could also face the upfront costs of new TV equipment and installation support.
David Coulson, partner, economic advisory at EY, said: “If a switch were made to distribute TV exclusively over the internet, even by 2040 approximately four million homes would still need broadband and set-top-box upgrades.
“This is forecast to cost government and consumers over £2billion to set-up, plus a further £900million each year to cover ongoing broadband fees and to support vulnerable users.”
Broadcast 2040+, a coalition of 35 organisations, is urging the UK government to publicly commit to safeguarding terrestrial TV and radio services until 2040 and beyond.
A spokesperson for the campaign said: “This report lays bare the hidden cost of any proposed switch-off of terrestrial TV.
“It would mean vulnerable people being asked to pay more, risk disconnecting millions from universal access to TV.
“The report also makes clear that this costly disruption is not necessary.
“The UK’s current hybrid model of TV, with terrestrial operating alongside online streaming as complementary services, works well and gives us the best of both worlds.”
CUT YOUR TELECOM COSTS
SWITCHING contracts is one of the single best ways to save money on your mobile, broadband and TV bills.
But if you can’t switch mid-contract without facing a penalty, you’d be best to hold off until it’s up for renewal.
But don’t just switch contracts because the price is cheaper than what you’re currently paying.
Take a look at your minutes and texts, as well as your data usage, to find out which deal is best for you.
For example, if you’re a heavy internet user, it’s worth finding a deal that accommodates this so you don’t have to spend extra on bundles or add-ons each month.
In the weeks before your contract is up, use comparison sites to familiarise yourself with what deals are available.
It’s a known fact that new customers always get the best deals.
Sites like MoneySuperMarket and Uswitch all help you customise your search based on price, allowances and provider.
This should make it easier to decide whether to renew your contract or move to another provider.
However, if you don’t want to switch and are happy with the service you’re getting under your current provider – haggle for a better deal.
You can still make significant savings by renewing your contract rather than rolling on to the tariff you’re given after your deal.
If you need to speak to a company on the phone, be sure to catch them at the right time.
Make some time to negotiate with your provider in the morning.
This way, you have a better chance of being the first customer through on the phone, and the rep won’t have worked tirelessly through previous calls which may have affected their stress levels.
It pays to be polite when getting through to someone on the phone, as representatives are less inclined to help rude or aggressive customers.
Knowing what other offers are on the market can help you to make a case for yourself to your provider.
If your provider won’t haggle, you can always threaten to leave.
Companies don’t want to lose customers and may come up with a last-minute offer to keep you.
It’s also worth investigating social tariffs. These deals have been created for people who are receiving certain benefits.
CHECK FOR A FREE TV LICENCE
Watching live TV without a licence can land you in hot water, but you could be entitled to a discounted – or even free – licence.
The price of a TV licence rose from £159 to £169.50 a year in April.
This fee can be paid in one sum or in quarterly or monthly instalments.
You must have a TV licence if you watch TV as it is broadcast – live TV – on any channel, or watch programmes on catch-up on the BBC iPlayer.
You don’t need a TV licence to use streaming services or to watch any other channel’s catch-up service.
You can claim a free TV licence if you’re 75 or older and either receive pension credit yourself or live with a partner who gets the benefit.
You can apply for a free licence when you’re 74, but will still have to pay until the end of the month before your 75th birthday.
You can apply for your free licence online or by calling 0300 790 6071.
Other individuals could also be eligible for a discounted TV licence if they live in residential care or sheltered accommodation or if they’re registered blind.
If you live in sheltered accommodation or residential care and are over 60 or disabled, you can get a licence for just £7.50.
If you’re registered blind or live with someone who is, you’re in line for a 50% discount.
The licence must be in the name if the person registered blind, but if your existing licence is not in their name you can make an application to transfer it.
You can apply for the discount online by visiting tvlicensing.co.uk/reducedfee.
WATCH TV FOR FREE
THERE are a number of ways you can watch TV for free without having to pay the licence fee.
Pluto TV
Pluto TV is another free streaming service with more than 100 channels.
Anyone can access Pluto TV for free on the web or on your iPhone and Android device.
Virgin Media has just made it available via some of its boxes – but bear in mind you’d need to pay a TV licence and take out a contract with Virgin to take advantage of this.
Amazon Freevee
Amazon Prime Video may be the first thing you think of but the retail giant also has a growing free alternative.
Freevee is home to exclusives like Judy Justice.
It’s the new home of Neighbours too, which is set to return later this year.
But there’s some classic on-demand content too.
The L Word, Nashville and Parks and Recreation are among the shows available.
All4
All4 is the main source of on-demand programmes from Channel 4, E4, Film4 and More 4.
The service is free to use and funded by advertisements.
All4 offers a free and extensive library of both classic shows and more recent programmes, including complete box sets of some of our most popular series like Gogglebox.
UKTV Play
If you’re a fan of Dave, Drama, W and Yesterday then the UKTV Play is the place for you.
The latest featured shows include Meet The Richardsons, Annika and Great British Railway Journeys.
You’ll have to sign up to start watching – and there are ads.
ITVX
ITVX launched in November, replacing the old ITV Hub.
ITV now drops many new and exclusive shows online before they’re shown on ITV1.
There’s also a load of other shows, including more niche interest like anime.
Free trials
You should take advantage of free trials to keep more of your hard-earned cash.
Some trials are as short as seven days, while others last an entire month.
For example, Amazon Prime Video offers newbies 30 days streaming for free.
Now TV also offers weekly free trails for Sky Cinema and Entertainment packages.
But any savvy savers must remember to unsubscribe to any subscriptions before the end of the trial period or risk incurring further charges.
Customers can also nab a free trial of streaming services when buying new technology.
Some Apple technology purchases will include a free trial of Apple TV+.