Pricing Pressure and Broadband Affordability Trends in the UK – What ISPs Must Consider for 2026

1. What the data says about pricing and affordability

As of May 2025, 26% of UK households, around 6 million homes, reported difficulty affording communications services, and nearly 1.9 million broadband households specifically said they struggled to pay for their broadband the previous month, according to Ofcom’s latest Affordability Tracker.

Meanwhile, independent research from Point Topic shows the cheapest available broadband subscription at postcode level in May 2025 ranged from £12.50/month (FTTP entry‑level) up to £38.32/month (fixed wireless) across the UK.

Additionally, average monthly broadband cost data from Uswitch put the UK average at about £26/month in January 2025, down from £31 in January 2024.

These figures tell us that while affordability remains a concern for around one in four households, the remaining share of UK broadband users appear more price elastic and they may be open to higher cost offerings if the value is clear. This creates a dual-track opportunity for ISPs: maintain competitive entry-level plans for the price-sensitive segment, while developing higher-margin services, enhanced Wi-Fi coverage and personalised bundles to appeal to users willing to pay more for performance and reliability.

2. Why ISPs are feeling the squeeze

Consumer sensitivity: With inflation and household cost‑burdens high, end users are more likely to churn if value isn’t obvious or if cheaper alternatives emerge.

Regulatory expectations: Ofcom is increasing its focus on customer protection, transparency of contracted pricing and affordability for vulnerable customers.

Competitive moves and full‑fibre roll‑out: As more homes are passed with gigabit‑capable networks, ISPs must invest more in infrastructure and Customer Premises Equipment even while keeping pricing in check.

Device and support cost escalation: Managing end‑user devices (CPE) across millions of homes brings deployment, support and refresh cost risks, making cost‑efficiency imperative.

3. What ISPs must consider for 2026

Here are key considerations that ISPs should actively address:

Differentiation without margin erosion: Rather than competing purely on price, emphasise additional value e.g., Wi‑Fi 6/ Wi‑Fi  7 devices, superior coverage, support quality.

Operational efficiency and scalability: Cost‑savings in support, installation and device management enable more competitive pricing without sacrificing profitability.

Future‑ready CPE and services: Customers expect faster speeds and better coverage. Hence offering CPE that supports Wi‑Fi 6 or Wi‑Fi 7, robust security and remote management becomes a differentiator.

Customer retention through experience: Affordable pricing gets the customer in; a seamless experience with strong coverage and low fuss keeps them. Churn is expensive.

4. How Euroroute’s solutions help ISPs respond

Euroroute enables ISPs to execute on these considerations through a combination of capabilities:

No‑Touch CPE Deployment: By delivering pre‑configured CPE devices, Euroroute reduces onsite installation cost, speeds up time‑to‑service and minimises support calls.

Partnerships with leading CPE vendors:
FRITZ!: Known for German engineering and consumer trust, FRITZ! devices offer high-performance routing, robust security features and a premium user interface making them ideal for ISPs looking to enhance brand value and customer satisfaction.

Kontron Innbox: These multi-gigabit CPE devices are engineered for scalable deployments, delivering strong and reliable coverage in diverse UK home and business environments. All at a cost point that supports competitive ISP pricing models.

Icotera: With a focus on high-efficiency, future-ready technology, Icotera’s Wi-Fi 6 and Wi-Fi 7 devices combine sleek Scandinavian design with powerful throughput and environmental sustainability, helping ISPs meet modern performance and ESG expectations.

Cloud ACS Platform: Through partnership with AVSystem, Euroroute offers remote, cloud‑based auto‑configuration and device‑management capabilities so ISPs can scale device fleets efficiently, maintain security, and reduce operational overhead.

Future‑ready Wi‑Fi 6/7 and coverage: Devices and services designed for next‑generation Wi‑Fi ensure ISPs can offer future‑ready connectivity that justifies pricing, enhances user experience and supports customer retention.

Euroroute Recommendation

In a UK market where affordability is increasingly critical, ISPs that only focus on price risk margin‑erosion, high support costs and churn. Instead, consider investing in operational efficiency, device quality and service differentiation. By leveraging Euroroute’s no‑touch CPE deployment, strategic vendor partnerships and cloud ACS platform, ISPs can reduce total cost of ownership, deliver compelling value and maintain competitive affordability, while also gearing up for the next wave of broadband demands in 2026 and beyond. Contact Euroroute today to explore how our CPE partnerships and operational solutions can support your growth.