1. Out of the loop

Local loop unbundling, which enables broadband companies to offer their services direct to the customer, is bringing down prices. For example, if you live in certain areas of London you can already obtain broadband for less than £10 a month with UK.

2. What speed?

You will need only a 1Mb or 2Mb connection if you use the internet for sending e-mails with some occasional web surfing and online shopping. But if you frequently download films or like to play online multiplayer games, you will want a connection speed of 8Mb or 10Mb. A 10Mb package will allow you to download a film in minutes.

3. Customer service

Avoid companies that charge an extortionate rate on helpline numbers. Most charge local or national call rates. A 24-hour helpline is ideal and response times should also be scrutinised — some companies take more than 24 hours to provide help.

4. The equipment

If you plan to connect a couple of PCs and a laptop to broadband, make sure that you have the appropriate equipment supplied, such as microfilters, which allow you to plug your broadband and home phone to the same device.

6. On the move

Most broadband companies will let you move house without charging a reconnection fee. But they will usually require you to sign another 12-month contract.

7. Download limits

Watch out for download caps. A 1Gb cap could restrict users to downloading about 100 minutes of video a week and about 250 songs a month.

8. Wireless routers

You can receive broadband in your home over a wi-fi wireless network. Users create their own “hot spot” by inserting a wi-fi device into their home phone connections.

9. Security

This is perhaps the most important issue to consider when you sign up for broadband. Cyber criminals can ruthlessly exploit the streaming internet access that broadband offers, so it is essential that you install an up-to-date firewall and antivirus software.

10. Cheaper by direct debit

You could be penalised if you do not pay your bill by direct debit.