Independent energy provider First Utility has launched a low-cost broadband service today as it looks to diversify its business.
First Utility Broadband will target the 15 million UK households who are currently out-of-contract with their broadband service provider and paying over the odds as a result.
The company has promised no set-up fees or upfront charges and no price increase at the end of the contract term.
Customers can choose from one of three straightforward, unlimited download plans all with an 18-month minimum contract term and no price increase at the end.
First Utility’s UK managing director, Ed Kamm said the parallels between the energy and telecoms markets are “striking”, with “large swathes of households paying far too much for both services”.
“We’ve proven that our approach of putting the customer in control results in more money in their pockets and we believe we can do the same with broadband,” said Kamm.
“We’ve been successful in unsettling the Big Six in energy and our next target is the Big Four in broadband.
“This next phase of our business development will see us adding more diversified services to our portfolio while continuing to grow our domestic energy customer base. Broadband is the first step and is a natural extension of the business, building on our early history in telecoms.”
Initially aimed at energy customers, First Utility expects to take on broadband-only customers later this year.