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 Online’s unbundled service, priced at £9.99 a month.

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. PlusNet’s Broadband Plus offers 2Mb for £14.99 a month. 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.

NTL offers 10Mb broadband for £37.99 a month, while Wanadoo offers 8Mb broadband for £17.99 a month.

3. Customer service

Avoid companies that charge an extortionate rate on helpline numbers. Most charge local or national call rates. Toucan customers pay 30p a minute on its technical support number. A 24-hour helpline is ideal and response times should also be scrutinised — some companies take more than 24 hours to provide help.

4. To sign up or not

If you live outside London, it may not be too long before you can obtain broadband for less than £10 a month. Therefore, you may want to avoid signing up for a 12-month contract and choose a pay-as-you-go package instead.

Chris Williams, of uSwitch, the price comparison website, says: “It is still very much a land grab for broadband companies. With improvements in technology, the opportunities are there for them to offer cut-price deals in the near future.”

5. 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. PlusNet is an exception: customers pay a moving fee of £64.63, but they do not have to renew their 12-month contract.

7. Download limits

Watch out for download caps. Pipex has a 1Gb cap on its £14.99-a-month package. Tesco’s value broadband has a 1Gb cap on its £13.97 a month deal. 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. Both BT and NTL charge an additional £1 a month to customers who pay by other means. Telewest, meanwhile, charges customers an extra £2 a month.