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Price of cutting broadband deals 'to be reduced'
Friday 18th June 2010, by Daniel King
The price of cutting short a broadband package is set to be lowered by as much as 85 per cent.
Charges for an early termination have been relatively high in the past, but Ofcom has agreed with BT, TalkTalk and Virgin Media to the reduction.
The regulatory body believes if a consumer cancels a policy early they should not have to pay more money than what is left on the contract.
It comes after Ofcom carried out an 18-month review to check the three companies were complying with regulations.
Neither of them believed their charges were unfair but all agreed to the new reduction.
The highest previous charge was a one-off fee of £33.40, which has now been cut to £8 under the new regulations.
Peter Phillips from Ofcom said: "We very much welcome the reductions made by BT, TalkTalk and Virgin Media which mean that consumers will face lower charges if the wish to end their contracts."
All other providers of both broadband and phone rentals have been told to follow the example set by the big three companies, or risk formal action by Ofcom.
BT and Virgin announced that their new fees will come into force in October.
It appears that this is a positive move for consumers as it can save them a large amount of money on unwanted bills and gives them more freedom to get out of a contract if they are not happy.
Broadband is becoming ever popular, with an estimated 484 million people connected worldwide, according to the Broadband Forum.
Categories: Broadband, BT, TalkTalk, Virgin Media
