Small-Biz
computing for small companies
Wednesday 27 August 2008, 10:30 AM
Broadband Customers Overpaying By 70%
UK customers are paying 70% more than they need to for their broadband connections despite the credit crunch. Masses of broadband customers (70,000 in fact) on 8Mbps broadband packages have been interrogated by Broadband Expert to find out how much they pay for their connections. Compared to the deals currently available on the market, it’s no surprise that there’s a huge disparity between the two figures - much like the energy market!
On average UK broadband customers pay £16.98 per month for an 8Mbps broadband package, despite some providers offering a similar package for under £10 a month. BT and Demon customers lose out most, while Sky and O2 customers are quids in.
You may not be aware that broadband prices have dropped dramatically in the last few years. A customer who signed up for a broadband package 2 years ago could be paying two to three times the amount they would pay if they signed up to a similar or better package today. Broadband providers (and mortgage lenders while I’m ranting) could - and should - do more to ensure long standing customers are not overcharged by moving them on to the same pricing a new customer would receive.
Some customers are aware that they could save money by switching to a new provider, but are not willing to spend the time to move to a different ISP. Switching broadband is no longer the traumatic process it once was. Under Ofcom regulations, Internet Service Providers must provide a MAC code (a numerical code like a serial number) which can be passed to the new provider and is designed to make switching from one provider to another as painless as possible. Even with the best planning in the world you can expect 1or 2 day’s downtime, but aren’t the cost savings worth the hassle in the long term?
PreviousComments on this post
I just switched from Bulldog (now Pipex) to O2. I was paying over £20 per month for an 8mb connection and now pay £10/month for 16mb.
I knew there were cheaper deals for a while but could never afford the down time.
I tried going down the mac code route but my ISP had moved my connection at the exchange (i.e. I became an LLU customer) so I was on their private network so I was required to switch back to BT before applying for a new connection.
Even with changing back to BT and then applying for a new Connection with O2 I had only a week downtime.
I used to work at uSwitch.com and it's shocking the prices people are paying in this country for services they could be getting vastly cheaper from another provider.
Yup, it is shocking the prices people are paying in this country for broadband. But like you, I expect many don't want the downtime or can't be bothered to switch. It's like utility suppliers...
I expect one way to avoid downtime (in town centres anyway) would be to hop on to the local wi fi network, and run your own encrypter whilst doing so.
This is also where a pay as you go mobile network adapter would come in handy. Just keep the thing in a drawer incase of any emergencies.
