A third of households overpay for broadband
Research by the price comparison site found that 31% of UK households overpay for broadband based on their usage requirements.
The study compared prices paid for broadband with household internet usage, including streaming, gaming, email, and web browsing.
It found that households currently overpaying could save an average of £93 per year by switching to a better value broadband deal.
The study found that 26% of consumers simply bought a broadband deal with download and upload speeds similar to their previous package – even if their broadband needs had changed.
Almost a fifth (19%) relied exclusively on broadband provider websites to determine how much speed they needed, and 12% simply guessed what their broadband requirements might be before picking a provider and plan.
Tom Paton, founder of Broadband Savvy, said: “Part of the problem is that once you sign a contract, it’s very difficult to change if you get the wrong speed, especially if you want to switch to a cheaper package.
“There’s nothing wrong with paying for more bandwidth if you want the luxury of faster internet. However, many households are overpaying not by choice, but because it’s so difficult to find out how much bandwidth you need before you put pen to paper. Consumers do not have an accessible, easy-to-use way of calculating how much internet speed they really need, given their internet usage.”
Of those who paid the household broadband bill each month, 21% said that they had no idea how much broadband speed they were paying for.
The study also found that consumers were just as likely to pay for insufficient internet speeds based on their usage. Nearly four in 10 (37%) required more speed based on their usage than the package they were currently paying for offered.