Almost three million broadband customers (33%) whose deal ended in the last year say they never got an End-of-Contract Notification (ECN)[1]
These consumers are paying £251 million a year more than they should — on average £90 per household[2]
More than eight million broadband bill-payers should have received an ECN since they were introduced by the regulator in February 2020[3]
ECNs have led more than four million broadband customers to switch to a better deal, either with their existing supplier or a competitor[4]
Uswitch.com urges suppliers to be more consistent in ensuring customers engage and act on ECNs, and calls on Ofcom to ensure that no sharp practices are being used to dissuade consumers from taking action.
Almost three million broadband customers whose deal expired in the past 12 months say they did not receive an End-of-Contract Notification (ECN)[1] — potentially costing them up to £251 million a year in savings[2], according to a survey of more than 17,000 broadband users by Uswitch.com, the comparison and switching service.
More than eight million broadband bill-payers whose contracts have ended since February 2020 should have received an ECN in the weeks leading up to their deal expiring - but a third (33%) say they didn’t get one[3]. Being on an expired broadband tariff costs about £90 extra a year on average[2].
ECNs were introduced by Ofcom on 15 February last year and require broadband, mobile and pay-TV providers to tell customers when their contract is ending, and what they could save by signing up to a better deal. Consumers whose contract is coming to an end should receive an ECN by letter, text or email between 10 and 40 days before their deal expires.
Of the five million broadband consumers who received an ECN, more than four million (88%) used the information to switch to a better deal in the last 12 months, either with their current provider or a competitor. About one in eight people (12%) did nothing[4].
Customers whose deals have ended should receive an out of contract reminder once a year. This means that those whose deals had expired before 14 February 2020 should get one before 13 February 2021. However, by 1 November, only six in ten broadband users (62%) in this situation had received one[5].
The language used in these notifications could mean that people fail to realise they have even received the document, reducing the chances they will open it or take action promptly. Subject lines for some ECN samples seen by Uswitch use a neutral tone and talk about “An update to your broadband service” or “A little reminder about your contract”, in contrast to the more urgent language deployed by providers in other circumstances[6].
Uswitch has also seen examples of providers extending pricing discounts beyond contract end dates, creating a loophole and avoiding the requirement of sending a formal notice when these new discounts end[6].
Uswitch.com is calling on telecoms providers to be consistent in ensuring that ECNs and out of contract notifications engage all customers who qualify for one, and calls on Ofcom to crack down on any behaviour that attempts to dissuade consumers from reviewing whether they are on a good deal.
Richard Neudegg, head of regulation at Uswitch.com, says: “Life is challenging at the moment and with people juggling so many responsibilities it’s important to make sure that consumers can access important information about their household bills easily.
“Millions of broadband customers have received an end-of-contract notification or out-of-contract reminder in the last year, and it’s great to see that the vast majority have acted to get themselves a better deal.
“However, the fact that a third of consumers whose contract was due to end say they didn’t, or couldn’t recall, receiving an end-of-contract notification should ring alarm bells.
“More must be done to build on the success of these notifications so that all customers have a fair chance of engaging when their contract comes to an end.
“When providers choose language in their notices which lacks the priority or formality that might be expected for such important information, consumers can be forgiven for missing they have received something that requires action.
“Ofcom must act to make sure providers cannot deploy marketing and pricing tactics designed to fly the chance of better deals under the radar.”
Find out how you could save nearly £1,000 a year with Uswitch here.
FOR MORE INFORMATION
Rory Stoves
Phone: 020 3872 5613
Email: rory.stoves@uswitch.com
Twitter: @UswitchPR
Notes to editors
Opinium surveyed a sample of 20,376 people who are responsible for either their home broadband (17,256) or mobile (17,601) from 29th October to 9th November 2020.
1. 2,132 whose broadband contract was coming to an end were asked ‘Did you receive a notification (letter, text or email) from your broadband provider before your contract ended offering you a new deal?’ 1,261 said ‘yes’. 695 said ‘no’. 1,261 / 17,256 broadband users surveyed = 7.3%. 7.3% of 48.9 million people responsible for their home broadband = 3.57 million broadband users who received an ECN between 14th February and 1st November 2020. 3.57 million / 260 days x 365 days = 5 million broadband users who received an ECN in a calendar year. 695 / 17,256 broadband users surveyed = 4%. 4% of 48.9 million people responsible for their home broadband = 1.97 million broadband users who received an ECN between 14th February and 1st November 2020. 1.97 million / 260 days x 365 days = 2.77 million broadband users who didn’t receive an ECN in a calendar year who should have.
2,132 / 17,256 broadband users surveyed x 48.9 million people responsible for their home broadband = 6.08 million broadband users who should have received an ECN between 14th February and 1st November 2020. 6.08 million / 260 days x 365 days = 8.48 million broadband users who should have received an ECN in a calendar year.
2. Uswitch.com data reveals the average extra cost of being out of a broadband contract is £7.56 a month. £7.56 x 12 = £90.72 extra cost a year for being out of contract. 2.77 million broadband users who didn’t receive an ECN x £90.72 = £251 million a year extra cost.
3. Those whose broadband contract was coming to an end were asked ‘Did you receive a notification (letter, text or email) from your broadband provider before your contract ended offering you a new deal?’ 33% said ‘No’.
2,163 whose mobile contract was coming to an end were asked ‘Did you receive a notification (letter, text or email) from your mobile provider before your contract ended offering you a new deal?’ 1,242 said ‘yes’. 1,242 / 17,601 mobile users surveyed = 7%. 7% of 39.2 million people responsible for their home mobile = 2.77 million mobile users who received an ECN between 14th February and 1st November 2020. 2.77 million / 260 days x 365 days = 3.88 million mobile users who received an ECN in a calendar year.
5 million broadband users + 3.88 million mobile users = 8.88 million broadband or mobile users who received an ECN in a calendar year.
4. Broadband users who received an ECN were asked “Did the notification from your broadband provider prompt you to do any of the following?’ 36% said ‘I took out a new contact with my existing provider’. 36% said ‘I spoke to my provider and got an even better deal’. 9% said ‘I used a price comparison site to compare all the deals in the market and took out a deal with a new provider’. 7% said ‘I used a price comparison site to compare all the deals in the market and took out a deal with my existing provider’. 12% said ‘I did nothing’. 88% acted on their ECN. 88% of 5 million broadband users who received an ECN in a calendar year = 4.4 million broadband users acted to get a better deal.
Mobile users who received an ECN were asked “Did the notification from your mobile provider prompt you to do any of the following?’ 34% said ‘I took out a new contact with my existing provider’. 18% said ‘I moved from a handset contract to a SIM-only deal with my existing provider.’ 12% said ‘I spoke to my provider and got an even better deal’. 6% said ‘I used a price comparison site to compare all the deals in the market and took out a deal with a new provider’. 3% said ‘I used a price comparison site to compare all the deals in the market and took out a deal with my existing provider’. 27% said ‘I did nothing’. 73% acted on their ECN. 73% of 3.88 million mobile users who received an ECN in a calendar = 2.8 million mobile users acted to get a better deal.
4.4 million broadband users + 2.8 million mobile users = 7.2 million mobile or broadband users who acted on their ECN to get a better deal. 7.2 million out of 8.8 million = 81.8% of mobile or broadband users act on ECNs.
4. Ofcom: Companies must tell customers about their best deals
5. Broadband users who had been out of contract for more than six months were asked ‘Did you receive a notification (letter, text or email) from your mobile provider before your contract ended offering you a new deal?’ 255 out of 555 said ‘No’. Broadband users whose contract ended more than 18 months ago were asked ‘Did you receive a notification (letter, text or email) from your mobile provider before your contract ended offering you a new deal?’ 5,079 out of 7,994 said ‘No’. In total, 5,079 + 255 = 5,334 said ‘No’ out of 555 + 7,944 = 8,499. 5,334 / 8,499 = 62.8% of already out of contract broadband users had received one by 1 November.
Mobile users who had been out of contract for more than six months were asked ‘Did you receive a notification (letter, text or email) from your mobile provider before your contract ended offering you a new deal?’ 455 out of 938 said ‘No’. Mobile users whose contract ended more than 18 months ago were asked ‘Did you receive a notification (letter, text or email) from your mobile provider before your contract ended offering you a new deal?’ 4,404 out of 6,268 said ‘No’. In total, 4,404 + 455 = 4,859 said ‘No’ out of 938 + 6,268 = 7,206. 4,859 / 7,206 = 67.4% of already out of contract mobile users had received one by 1 November.
6. Uswitch analysis of End-of-Contract Notifications received by consumers between 20/05/20 and 19/01/21.
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles.
More people go to Uswitch to switch their energy, broadband and mobile than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.
Free mobile app Utrack also helps households manage their home energy usage and make potential savings.
Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.
