Broadband customers see monthly bills increase by 89% when their contracts end, meaning they could be £69 per year worse off if they don’t switch deals
Costs can increase significantly, by as much as 410%, following the end of a contract
Nearly a third (30%) of Brits are still with their very first broadband provider, while 13% haven’t switched for more than five years
Almost a third (30%) think it’s too complicated to switch providers, so miss out on low introductory offers and significant savings.
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 Uswitch.com, the price comparison and switching service, 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 Uswitch.com, 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.”
The table below shows end of contract prices across the main providers, for the best available fibre and non-fibre broadband packages through Uswitch.com:
Unlimited non-fibre broadband deals
Provider
|
Introductory offer price per month
|
Average monthly cost during contract
|
Monthly price following contract end
|
Percentage difference
| |
EE Unlimited Broadband & Calls
|
£1.95
|
£1.95
(+ £15.75 line rental)
|
£9.95
(+ £15.75 line rental)
|
410%
(45%)
| |
Plusnet Unlimited Broadband & Calls
|
£2.50
|
£2.50
(+ £15.95 line rental)
|
£9.99
(+ £15.95 line rental)
|
300%
(40%)
| |
TalkTalk SimplyBroadband
|
£0
|
£1.17
(+ £16.70 line rental)
|
£3.50
(+ £16.70 line rental)
|
199%
(13%)
| |
BT Unlimited Broadband & Calls
|
£7.50
|
£7.50
(+ £16.99 line rental)
|
£18.00
(+ £16.99 line rental)
|
140%
(43%)
| |
Sky Unlimited Broadband & Calls
|
£0
|
£0
(+ £16.40 line rental)
|
£7.50
(+ £16.40 line rental)
|
N/A
(46%)
|
Source: Uswitch.com, data correct on 5th January 2015
Unlimited fibre broadband deals
Provider
|
Introductory offer price per month
|
Average monthly cost during contract
|
Monthly price following contract end
|
Percentage difference
| |
BT 38Mb Infinity Broadband & Calls
|
£10.00
|
£10.00
(+ £16.99 line rental)
|
£23.00
(+ £16.99 line rental)
|
130%
(48%)
| |
TalkTalk 38Mb Fibre Broadband
|
£5.00
|
£7.83
(+ £16.70 line rental)
|
£13.50
(+ £16.70 line rental)
|
72%
(23%)
| |
Virgin Media 50Mb Fibre Broadband & Calls
|
£4.00
|
£10.75
(+ £16.99 line rental)
|
£17.50
(+ £16.99 line rental)
|
63%
(24%)
| |
Sky 38Mb Fibre Broadband & Calls
|
£0
|
£13.33
(+ £16.40 line rental)
|
£20.00
(+ £16.40 line rental)
|
50%
(23%)
| |
Plusnet 38Mb Fibre Broadband & Calls
|
£3.75
|
£11.24
(+ £15.95 line rental)
|
£14.99
(+ £15.95 line rental)
|
33%
(14%)
| |
EE 38Mb Fibre Broadband & Calls
|
£9.98
|
£16.63
(+ £15.75 line rental)
|
£19.95
(+ £15.75 line rental)
|
20%
(10%)
|
Source: Uswitch.com, data correct on 5th January 2015
For more information visit www.uswitch.com or call 0800 093 0607
FOR MORE INFORMATION
Lucy Smart
Phone: 020 7148 4663
Email: lucy.smart@uswitch.com
Twitter: @UswitchPR
Notes to editors
Uswitch surveyed 1,631 UK adults in September 2014 via its online consumer opinion panel.
Based on data from Uswitch.com on 5th January 2015, the average broadband package increases by £5.71 per month or £68.52 per year at the end of the minimum contract term. According to ONS, 22 million now have home internet access, but according to our survey 30% have never changed their broadband provider. 30% of 22 million is 6.6 million. According to ONS, broadband connections increased by one million people between 2013 and 2014 from 21 million to 22 million respectively. If one million people have new broadband connections in the last year, then one million of the 6.6m may still be in contract with their provider. If the remaining 5.6m are paying an extra £5.71 a month, we would expect them to spend an extra £383,712,000 a year. All broadband costs are exclusive of monthly landline costs
The best available broadband package across fibre and non fibre costs an average of £6.42 per month. We have seen this increase by an average of £5.71 per month at the end of contract, which is an increase of 89% on the average monthly broadband price. This equates to £68.52 per year. Prices were taken on 5th January 2015
EE offers customers Unlimited Broadband and Calls at £1.95 for the duration of the minimum contract term, after which it increases to £9.95 - an increase of 410%
Respondents on a Uswitch Consumer Opinion panel in September 2014 were asked: When did you last change broadband provider? 18.8% said less that one year, 24.8% said 1-3 years, 13.6% said 3-5 years, 12.7% said more than five years and 30% said they had never changed provider
ONS statistics: http://www.ons.gov.uk/ons/rel/rdit2/internet-access---households-and-individuals/2014/index.html
Uswitch.com conducted a consumer poll in July 2012 among 2,000 UK adults with home broadband and found that 46% of customers had never switched providers
Respondents on a Uswitch Consumer Opinion panel in September 2014 were asked: Thinking about switching broadband providers, which of the following do you agree with? – 8.9% said ‘the negative experience put me off trying to switch again’, 15.2% said ‘they are too pushy to get you to stay’
Respondents on a Uswitch Consumer Opinion panel in September 2014 were asked: Thinking about switching broadband providers, which of the following do you agree with? – 22.6% said ‘the process is too complicated’, 30% said ‘the process is too long’, 72.6% said ‘the provider you’re moving to should handle the switch’, 5.5% said ‘the provider you’re leaving should handle the switch, 19.3% said ‘I don’t know anything about the switching process’
24% of people go via a price comparison website when switching their home broadband according to Uswitch research conducted by OnePoll in December 2014.
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