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Consumers still forking out for dial up

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03/09/2008

Recent statistics have shown that 9% of UK households with internet access are still using a dial-up connection despite it being much more expensive and less efficient than a broadband connection.

Research from Broadband Choices has shown that the cheapest dial-up connection costs £175.89 in the first year (AOL Anytime) compared to £89.87 (TalkTalk) for broadband – a difference in price of nearly 100%. That’s an extra £127m a year spent by dial-up users in the UK.

Michael Phillips, product director of Broadband Choices, said: “There are a number of reasons why consumers are failing to update their internet connection. With some dial-up packages you are effectively on a pay as you go rate which some people find more straightforward and there is also no minimum contract term.

“However, the most common reason for sticking with an inferior service is simply customer inertia. People wouldn’t think twice about shopping around for their gas or electricity supplier, so why not broadband?

“Broadband is much cheaper and faster than dial up, and consumers can benefit from special offers on other services such as their home phone and digital TV with bundled packages, thus saving even more in the long run. The longer people spend on dial up, the more money they are throwing down the drain.”

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