Energy challenger First Utility will now take on the broadband Big Four with new services

Courtney Goldsmith
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First Utility says there are similarities between the energy and broadband markets (Source: Getty)

After taking on the Big Six, First Utility, the UK's largest energy challenger, has announced it will take on the broadband Big Four.

This is the first step in First Utility’s diversification plan to become a home services company with a new offering of simple, low-cost broadband.

After a successful soft launch in late 2016, the firm said its new service will target the 15m UK households currently out of contract with their broadband service provider and paying "over the odds", the firm said in a statement.

"The parallels between the energy and telecoms markets are striking, with large swathes of households paying far too much for both services," said Ed Kamm, UK managing director of First Utility. The firm estimates 16m households are overpaying by hundreds of pounds.

"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," Kamm added.

Read more: The poor state of UK broadband is letting down British children

First Utility Broadband will offer three plans ranging from £18.99 to £34.99 per month with 18-month minimum contract terms, and it promises no price rises and transparent customer engagement.

"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," Kamm said.

The programme will originally be aimed at energy customers, and First Utility will take on broadband-only customers later this year.

Read more: Flood of new energy tariffs risks "bamboozling" customers

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