BT Reintroduces Broadband Setup Fee, Sparking Customer Backlash

BT has reintroduced a £30 setup fee for new customers signing up for its broadband and EE services, a move that has drawn criticism from consumer advocates and highlights a growing trend in the industry. The charge, effective July 31, contrasts with the general market trend over the past decade, where upfront fees for broadband installation have largely diminished.

Ernest Doku, a broadband expert at the comparison website Uswitch, described the reintroduction of the fee as a "badly misjudged move." He noted that "At a time where there is continued focus on the cost of living, there should not be a price of entry to saving money on your broadband." Other major providers such as Community Fibre, Sky, and Vodafone currently do not advertise upfront installation fees.

BT attributes the decision to increased global demand for electrical components, which has raised the cost of producing its broadband hubs. The company stated that it had absorbed these costs for several years but is now implementing the activation fee to help cover them. A spokesperson for BT emphasized that the company offers a range of competitive deals and that existing customers are unaffected by the new charge.

Doku pointed out that new customers cannot avoid the fee. He suggested that if the charge is indeed related to the cost of equipment, customers who already possess a functional router should be permitted to use their own to bypass the fee.

Alternative Broadband Deals

The reintroduction of BT's setup fee comes at a time when numerous broadband providers are offering attractive deals with no upfront charges. According to Uswitch, some of the current offers are among the strongest seen in the market for some time. These deals are particularly beneficial for customers whose contracts are nearing their end.

For customers out of contract, comparison websites can help identify significant savings. Even for those still within their existing contracts, some providers offer to cover early termination fees, often up to £300, as bill credit. However, consumers need to carefully assess these offers, as not all tariffs may qualify for the full amount, and direct negotiation with the new provider might forgo lucrative vouchers offered through comparison sites.

According to Uswitch data from July 31, 2026, some of the best-value broadband deals for 24-month contracts include:

• Community Fibre's 1Gbps Full Fibre Broadband at £20 per month, with a £165 voucher value.
• Rise Fibre's Full Fibre 900Mbps at £5 a month for the first six months, then £28, with no voucher value specified.
• Three's 5G BB Unlimited at £15 per month, with a £50 voucher value.
• Virgin Media's Gig1 Fibre Broadband at £22.99 per month, with no voucher value specified.

These deals are subject to change and network availability. Consumers are advised to compare prices to find the most cost-effective option, especially amid ongoing concerns about the cost of living.