Long-term broadband contracts 'not ideal'
Long-term broadband contracts 'not ideal'
(Mon, 16th March 2009)
Broadband users should think carefully when choosing to sign up with a new provider, as most now require a minimum 12-month commitment, according to a report.
Lisa Bachelor, writing for the Observer, claimed that broadband prices are becoming more and more affordable as firms battle to overcome the downturn and attract new customers.
She claimed that credit-crunched Brits could save over £100 a year by switching provider and still benefit from reliable connections and fast download speeds.
Plusnet recently launched a new broadband service priced at just £5.99 a month, while rival internet service provider (ISP) TalkTalk is offering a phone and broadband package for £6.49.
Ms Bachelor highlighted the O2 broadband deal as one of the best on offer at £7.50 a month, with the company having topped a number of surveys for customer satisfaction and service in recent months.
However, she pointed out that the falling cost of internet packages is being accompanied by an increase in the length of contracts on offer.
Most now ask for a commitment of at least 12 months and many 18-month or 24-month deals are also emerging, meaning subscribers should be careful when choosing provider.
"This is not ideal if the broadband connection turns out to be poor or if you are going to move house in that time," Ms Bachelor wrote.
Some providers will not allow users to switch service, meaning they will remain liable for the rest of the contract, she added.
O2's success in the customer satisfaction stakes helped the firm increase its subscriber base to more than 340,000 during the fourth quarter of 2008, with chairman and chief executive Matthew Key attributing the rise to its low prices and high-quality service.
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