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Loyal broadband customers to pay £383 million over the odds in 2015

11th January 2015 Print

Despite almost three quarters (72%) of Brits having had home broadband for more than five years, 6.6million people (30%) have still never changed broadband providers. But, according to the research from, consumers who don’t review their broadband packages could end up losing, collectively, as much as £383 million a year.

Broadband customers see their monthly bills increase by an average of 89% following the end of their contract term, as discounts and offers valid for the duration of the contract expire. As a result, broadband bills increase by an average of £5.71 per month, or £69 per year, meaning customers who stay with their existing providers miss out on low introductory offers and significant savings.  

Many broadband providers offer competitive deals for new customers including free broadband and additional perks such as shopping vouchers. However, costs can increase dramatically at the end of a contract, with some packages such as the Unlimited Broadband & Calls from EE increasing by more than 400%.

Almost a third (30%) of customers are put off changing to a new supplier because switching is complicated, with almost a quarter (23%) saying the process takes too long.

Nearly one in 10 broadband customers (9%) have been put off moving providers after a difficult experience and 15% have found their current providers too pushy when they try to cancel contracts. Almost three quarters (73%) think the process should change so that the new (recipient) provider handles the switch, rather than the provider the customer is leaving.

However, savvy Brits are gradually becoming more aware of the value of changing to a new provider. Two years ago, almost half (46%) of broadband customers had never switched, compared to just 30% now. Nearly a quarter (24%) of people use a price comparison site to help them find the best deal when switching broadband providers.

Ewan Taylor-Gibson, broadband expert at, says: “When it comes to household bills, loyalty never pays. Bill payers should be as fickle as they can. Staying with your broadband provider after your contract ends could cost you £69 extra per year, as you miss out on competitive introductory offers and savings reserved for new customers only.

“Those who don’t switch are missing out on the perks of a highly competitive market. Deals like free broadband for the first 12 months are ripe for the picking. Unlike the mobile industry, where customers are normally tied into contracts for two years, 59% of all broadband contracts last just 12 months or less, meaning introductory deals can be taken advantage of far more frequently.

“A better deal doesn’t just mean a cheaper price. Shopping around not only slashes bills, but could open the door to faster surfing speeds, limitless downloads, and perks such as free shopping vouchers.

“Switching broadband services can seem complex, as the process is not always the same for each provider. If we make the process the same for everyone, regardless of who you are switching from or to, it will give more consumers the confidence to switch and save money. Ofcom is taking steps to address this for some areas later this year but consumers would benefit from a consistent, quick and easy process across the board.”