Broadband customers failing to switch

Tuesday, 12 May 2009 06:00

As Brits become comfortable changing energy companies, they are still sticking with their broadband provider.

Research by comparison service Consumer Choices found only ten per cent of broadband users switched to a better deal in 2008.

Households are being held back from switching by a number of factors.

The complex nature of broadband, phone, and TV packages means it can be hard to truly compare deals.

Furthermore the fixed contracts that people sign up to - often over 18 months - mean switching can come with a hefty fee - meanwhile there is a threat that internet connections could be disconnected during the process.

Further confusion comes with internet speeds - with some households often paying extra for extra fast internet that they may not need.

However, broadband prices have fallen some 37 per cent over the last three years.

Michael Phillips, product director at BroadbandChoices, 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 warned suppliers save their most compelling offers for new customers and many households continue to pay a legacy tariff.

"They don't realise that by switching - or asking for a better deal - they can get a newer, cheaper and faster service. If they bundle their services then the savings will be even greater."

Best broadband deals highlighted by Consumer Choices include Plusnet's Value 8Mb package with a first year cost of £78.87 and O2's standard 8Mb package at £88.08, although this is reserved for O2 mobile customers only.

Tips for best broadband deals:

• Compare broadband deals in your area - package availability and costs vary by postcode. There might be a bundle solution available in you area offering even greater savings.
• Haggle with your existing provider - they may have a newer deal you can move across to without changing supplier.
• 
  Sign up online - many ISPs offer additional discounts and incentives if you subscribe online rather than over the phone.

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