A cheaper broadband service was only sought out by ten per cent of broadband users during 2008, according to new research.

BroadbandChoices.co.uk revealed that the average cost of broadband dropped by 37 per cent between February 2006 and February 2009, lowering costs for small businesses in IT.

In addition to this, the same period saw the average speed of broadband increase seven-fold.

Michael Phillips, the product director at BroadbandChoices.co.uk, said: "Unlike most other household bills the cost of broadband has decreased whilst the quality has increased in the last three years.

"This is because of increased competitiveness within the market and a higher take up rate."

He said there is nothing wrong if businesses and private users alike were to haggle for a cheaper deal with their provider, given that many of them may have newer deals anyway and will help avoid a move to a separate service.

Earlier this month, Ofcom's Telecommunications Market Data Update Q4 2008 found that 17.3 million residential and small business UK broadband connections were in place at the end of the final quarter of last year.

According to a recent survey by Connect, the two biggest IT headaches for businesses were 'everyday hassles with IT' (37 per cent) and 'security concerns' (32 per cent).