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Brits waste millions on overpriced broadband packages

Tahmina Mannan
Written By:
Tahmina Mannan
Posted:
Updated:
04/03/2013

Households are throwing away more than £500m a year by failing to switch their broadband package, according to a new report. We reveal ten top tips to make switching easier.

Nearly 40% of UK households admitted they haven’t switched in over four years despite a dramatic drop in prices during this time.

According to broadbandchoices.co.uk, many customers can now get a broadband and home phone bundle for just £62 a year – a massive reduction in price from four years ago when households had to pay an average of £132 per year for their broadband package alone.

Households are being urged to review their packages as many can benefit from switching to better deals.

Dominic Baliszewski, telecoms expert at broadbandchoices.co.uk, said: “One thing we consistently hear from consumers is that they think switching broadband will be complicated and difficult, but this couldn’t be further from the truth nowadays.

“Customers who do their homework can benefit from a straightforward switching process – just follow our advice below if you are unsure.”

Here are a few top tips for switching broadband:

1. Compare the true cost of packages: Use an Ofcom-approved site that details hidden costs like installation charges, line rental and monthly prices after any special offer discounts expire.

It is important to get a realistic picture of what you will have to pay in the first year, so get your sums right before switching. broadbandchoices.co.uk offers a complete price breakdown so that customers don’t have to face the hassle of tracking down these costs themselves.

2. Check your contract length: Read your current contract to be certain that it has expired, allowing you to switch without any ‘early exit fees.’ Also take note of the length of the new contract length you are signing up to – some providers have 18 month terms rather than the standard 12 months.

3. Read customer reviews: Unsure of your new provider’s reputation? Customers make for the harshest critics so look for comparison sites that publish customer ratings – this will give you a realistic picture of the service the provider offers. broadbandchoices.co.uk offers unique provider star ratings taken from the reviews of over 10,000 broadband customers.

4. Data limits – consider your habits as a broadband user. Do you spend a lot of time downloading content like films and games, or do you only want to do a little light surfing and emailing? If the former, it is worth choosing a package with a ‘truly unlimited’ download limit to accommodate your activity and avoid excess download penalties.

5. Speed matters – broadband speed makes a huge difference to your experience as a customer, so choose a connection that won’t leave you waiting hours for a single file to download. This is even more important if there are multiple users online in your house at the same time, as this can cause a drag on your broadband speed.

6. Consider fibre optic : More providers than ever before are now offering fibre – and it is not as expensive as you may think.

Fibre optic is fantastic for busy households or gamers who are hungry for bandwidth and can make that pesky ‘buffering’ symbol a thing of the past with prices starting from under £10 per month.

7. Call costs: Look for things like inclusive mobile minutes and 0845 numbers on your home phone package as these can really bump up a monthly bill.

If they are not included in the monthly package cost, make sure the per-minute call costs are clearly signposted to you before signing up as they can be cleverly hidden away on provider sites. broadbandchoices.co.uk provides a full list of call costs, so you know what you will have to pay.

8. Pay your line rental up front: Line rental is a ‘hidden cost’ of broadband and in many cases is pricier than the package itself. Some providers, like Sky and BT, offer a significant discount of around £50 to customers who pay for their line rental upfront so its worth doing if you can afford it.

9. Get your MAC code: Some switches need a MAC code (Migration Authorisation Code), allowing you to switch broadband provider without any break in your service by helping your new ‘gaining provider’ identify where your line is.

You can get this code by calling your ‘losing’ provider (the provider you’re leaving) and asking for it – they are obliged to give it to you within 5 days. (N.B. MAC codes are only used when switching some ADSL services. They are not needed for cable broadband).

If you don’t feel comfortable battling with the provider you are leaving for this, ask your new provider to handle it for you – they will be motivated to switch you as soon as possible.

10. Sign up online: Many broadband providers offer additional discounts and incentives if you subscribe online rather than over the phone. Also check price comparison sites as they also frequently negotiate exclusive deals with providers on your behalf.


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