Wednesday, 12 Dec 2018

Millions of people overpay the broadband of £ 220 a year – and it's the worst provider

Broadband customers who stay at the same provider and do not negotiate a better offer are subject to loyalty penalties of up to £ 220 a year on average, according to a survey.

Which? As a BT customer, you could involve a higher loyalty bonus than any of the other seven major broadband providers, in a report examining how bad it could be.

The consumer group asked how many people were paying for broadband, whether they had negotiated a new deal in the last 12 months and, if so, how much they had saved. He then examined how this compares to the current cost of standard and ultra-fast offers on the market.

Broadband providers announce inexpensive introductory offerings to attract new customers, who often do not abandon their contracts at the end of the contract (usually within the first 18 to 24 months), even if they have been submitted at a substantial price increase.

A total of 73% of all broadband customers Which one? interviewed are with their supplier for more than two years.

BT's negotiating customers realized a significant saving of £ 168 per year compared to customers who did not have one.

The average annual broadband bill paid by a loyal BT customer is £ 540, compared to £ 372 for customers who have traded.

But if those who were willing to negotiate a better deal were able to save, new customers still almost always have the advantage over the cheapest broadband deals available.

When which? After analyzing the current market transactions, it was found that new customers who subscribe to a standard broadband connection to BT now pay a little less than £ 320 a year until the end of their contract , usually at least 18 months.

Staying with a supplier while you have nothing to gain does not make much sense financially

If this customer wants to subscribe to an ultra-fast connection, the cheapest fiber optic contract with BT costs around £ 380 a year, which is £ 160 less than the average cost of a connection for a long-time customer.

Virgin Media has the second highest loyalty premium, with a difference of £ 191 between its current cheapest offering and the average annual cost for loyal customers.

Like BT, the average amount paid by a long-time Virgin customer was, according to the survey, £ 540.

The survey also revealed that Virgin Media customers who took the time to negotiate a better deal with their provider pay an average of £ 384 a year, a saving of £ 156.

Ofcom had previously noted that as of May 2018, 93% of UK premises had access to very high bandwidth services, but their use was still low.

The regulator is scheduled to release its annual report on connected nations this month, which will contain the latest information on ultra-fast broadband access as well as the current absorption rate.

Alex Neill, which one? General Manager of Home Products and Services, said: "Customers of broadband networks will be appalled by the fact that they could not only pay through the nose just to be loyal to their provider a fraction of the price that They are currently paying.

"If you are willing to negotiate and are satisfied with your current service, haggling can provide you with a good discount, but finding the right offers and changing your supplier is the best way to make sure you get the best deal. a favorable rate. "

BT customers risk losing the most by not haggling or shopping

A spokesman for BT said: "We are clear with new customers who can benefit from promotional offers what will be the price at the end of this period.

"We also encourage customers to contact us to discuss offers and offers available to ensure that they are in a package that suits them."

Digital Minister Margot James said, "This is further evidence that loyal customers are penalized, which is not correct.

"We have strengthened Ofcom's consumer protection powers and are taking action by offering suppliers to tell customers when they can switch to a better offer."

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