24 October 2007
Having already made recent moves into the financial services and insurance markets, the Post Office is set to become an internet service provider.
Its new broadband offer will see customers able to pay for their connection in cash at their local post office branch.
The cash feature of the service reflects concerns that a 'digital gap' was opening up, between wealthy broadband customers who could afford to pay for the service on cards or through their bank accounts and those who could not afford to do so.
Elderly users, put off by newfangled transaction methods, have also been discouraged from making the switch to broadband - and both groups are targeted by the Post Office.
However, price comparison service uSwitch has pointed out that there are hidden costs to the new deal, which potential customers should be made aware of.
Head of Communications Services at uSwitch Steve Weller commented: "Targeting lower income households and the older generation by allowing cash payments is a great idea in theory."
"However, it's disappointing that consumers will have to pay a £12 annual premium for the privilege of paying in cash - it's also worth noting that the Post Office's pricing is not the cheapest on the market.
"It is clear that the Post Office is not competing on price and their approach is to trade on their established name and high street presence."
Customers should also know that downloads for the service have been capped at 40GB - and that the standard of the set-up support service offered by the Post Office remains unknown.
The new broadband product, along with a home phone service, will be available from next Monday.
© 2008 Adfero Ltd
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