Millions of broadband customers ‘trapped in costly deals’
20th February 2007
According to new research three quarters of people are paying too much for broadband because switching suppliers is time-consuming and complicated. Apparently about £621 million is being wasted on unsuitable packages every year, with baffling jargon, confusing packages and uncooperative companies causing the main difficulties.
The findings were discovered by uSwitch, after the change in Ofcom regulations (see article below).
Over the past few years a severe price war has caused prices fall and connections speeds rise. Last year alone the average price for broadband dropped by about 17%
USwitch estimates that 73% of people are outside their contracts but have not switched providers even though the cost of broadband varies by up to £303 a year between suppliers.
One of the major concerns is people either not know how or finding their suppliers difficult or unhelpful. However the new Ofcom regulations will go a long way to prevent unaccommodating suppliers.
Another source of discontent is complicated or confusing jargon causing people to struggle to find the most appropriate deal. The advice from consumer groups is to look beyond the headline price (which can often not include phone line rental) and be wary of the stated download speed.
Download speeds can vary depending on how far you are from your telephone exchange (as seen on Top 10 Broadband when entering both your phone number and postcode into the home page, it also shows the maximum speed you can get within your home). So although a provider may offer 24Mb download speeds, your home may only accept speeds of up to 2Mb. So it is important to check all details before signing to the right package.
Information sourced from ‘The Daily Telegraph’