Broadband users overpaying for outdated 'legacy tariffs'
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 over the past 3 years, coupled with a 130% increase in average connection speeds 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':
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.
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.
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.
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.
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.