* Over half of broadband users haven’t switched their provider in over 3 years (1)
* Cost of broadband has fallen over the last 3 years whilst connection speed has increased – switching ‘inertia’ means consumers are overpaying for inferior services
With the election uncertainty settled, the very real prospect of government spending cuts and tax increases will place further pressure on UK households to save money. Reducing household bills is top of most consumers’ agendas yet one service is still being overlooked – broadband.
In a recent survey by Broadbandchoices.co.uk of 6,000 broadband customers, more than half (56.3%) admitted they hadn’t switched broadband provider in over 3 years. This is despite a drop of 34% in the average cost of standalone broadband packages (2) over the past 3 years, coupled with a 130% increase in average connection speeds (3) indicating that these ’slow switchers’ are overpaying for inferior services.
Michael Phillips, product director commented:
“We all know that the near future will bring additional financial strain with the newly elected government making difficult decisions on spending cuts and taxes, so it is vital that consumers do not needlessly overspend.
“Broadband is now perceived as an essential utility, yet it is so often overlooked when households look to cut their monthly bills. This is very disappointing as there is a fantastic selection of broadband providers available who are battling for market share and in so doing drive through cost savings and service improvements.
“Broadband customers stuck on these ‘legacy tariffs’ are really losing out as the price of broadband has fallen whilst the quality of service has improved over the last 3 years. I strongly urge anyone who hasn’t switched in a long time to use an Ofcom-accredited comparison service and check what is available to them in their area. Even if they are satisfied with their current provider they should ask to be placed on an updated package as the benefits to their service and bank balance will be immediate.”
Broadbandchoices.co.uk’s top tips for moving from a ‘legacy tariff’:
1. Compare deals in your area – the first step is to check what is available in your area as package availability and costs vary by postcode. Use an Ofcom approved comparison calculator to check out the best deals and see how your current package compares against the latest ones.
2. Haggle with your existing provider – go to your provider with a list of what is available and see if they can match it. They will not want to lose a customer and may have a newer deal you can move across to without any hassle.
3. Sign up online – if you do decide to change broadband provider remember that many ISPs offer additional discounts and incentives if you subscribe online rather than over the phone.
4. Think literally – try to realistically consider your needs as a broadband user – have they changed since you first started using the internet? If you spend a lot of time downloading you will need a package that can support that activity, whilst if all you do is email and surf you’ll probably only need a basic service.
5. Take a bundle – if you already pay for a home phone and digital TV service, it may be worth bundling up with one provider. There are often discounts for consumers who buy all three services through a single provider and there is the added convenience of having just one bill to keep track of.
-ends-
Notes:
1) 2010 Broadbandchoices.co.uk Customer Satisfaction Survey. Online survey conducted January 2010. 56.3% (3,517 out of 6,224) respondents indicated that they had either never switched ISP or had last switched 4 years ago or more.
2) All data sourced from Broadbandchoices.co.uk comparison tables January 2007 and January 2010. Price change reflects difference in first year costs (which include special offers or discounts and any additional charges such as hardware, postage costs and installation fees) of standalone broadband packages excluding line rental. Broadbandchoices.co.uk compared the average total first year cost of the 10 cheapest packages available on its comparison calculator in January 2007 and January 2010. The difference in price was 34% (£172.66 vs. £114.18)
3) Data source and methodology as above. The increase in average headline speed of the 10 cheapest packages available on its comparison calculator in January 2007 and January 2010 was 130% (14Mb vs. 6.1Mb)
For further information please contact:
Michael Phillips/Jon Ingram
Broadbandchoices.co.uk
020 7400 6234
Gug Kyriacou/Emily Church
Polhill Communications
020 7655 0550
About Broadbandchoices.co.uk
Broadbandchoices.co.uk was launched in 2005 and is the UK’s leading Ofcom accredited broadband comparison calculator.
We offer comprehensive and impartial advice on broadband, mobile broadband and bundled packages (broadband with home phone and digital TV) saving our users over £200 when they switch.
The Broadbandchoices.co.uk calculator compares thousands of different combinations of packages and provides results in a clear, intuitive table where users can rank and compare services according to their individual needs.
Users can switch online or by calling our sales team on 0800 232 1279.
Broadbandchoices.co.uk powers over 20 leading comparison services including Confused.com, Comparethemarket.com and GoCompare.com.
www.Broadbandchoices.co.uk – working hard to save you money
– Stephane Bottine 28-05-2010
Authors bio is coming up shortly.