Tiscali Press Release

Tiscali's quarterly 'Broadband Basket' Report reveals significant savings online

Broadband-savvy UK consumers are saving on average over a third on their favourite items compared to high street shoppers, according to Tiscali's 'Broadband Basket'. The report, released today, looks at key items ranging from home electricals to entertainment, holidays, fashion and financial products and compares their on- and off-line prices. Results show clearly that the changing economy is effectively creating an offline tax for people who don't have access to a broadband connection.

Research from the Office for National Statistics shows that 61% of households across the UK currently have access to the internet and Forrester analysts predict that broadband penetration will reach 82% by the year 2013. This boom in internet access means that companies from all walks of life are creating offers designed specifically for their online users - from consumer electricals to bank interest rates.

The Broadband Basket analyses the online prices of 15 popular items when purchased online compared to their offline RRPs. The report is designed to reflect a cross-section of consumer life, from the latest video games to home insurance, a smaller sample but similar in principle to the government's Retail Price Index. The Broadband Basket Report will be conducted each quarter and will be used to gauge online discounts available only to those with broadband access.

The total cost of products in the Tiscali Broadband Basket represents savings of approximately £600 when purchased online. Highlights of the basket include online reductions of up to 50% in the consumer and home electronics space, with half price offers on products including current chart CDs, DVDs and televisions.

Savings are also found in the utilities sector, with many organisations offering discounts to customers who opt for paper free billing. BT, for example, offers customers a saving of £1.25 per month, and British Gas boasts average savings of £198 for all customers who sign up for gas and electricity online.

Further key savings from the report include:

20% discount on PlayStation 3 game Grand Theft Auto IV from Amazon.co.uk

50% discount on Madonna Hard Candy album from DVD.co.uk

50% discount on Ralph Lauren Polo shirts from Swerve.co.uk

15% discount on Lloyds TSB Home Insurance from Lloydstsb.com

Mary Turner CEO of Tiscali says: "With this report we are not saying that there aren't deals to be found on the high street, but without access to broadband it can be very hard to research and locate them. In addition, we are seeing companies from Amazon to HSBC creating special online only rates for their customers so it is clear how important broadband has become in helping consumers save money, which is more important than ever in current times.

"It also highlights that the digital divide represents much more than just what TV programme you can watch on iPlayer, it is fundamental to the nation's purse. In effect, it is creating an offline tax for those people who are unable to take advantage of the internet."

The research was conducted by Tiscali in May 2008.