Half of British households could switch to faster broadband today, Ofcom has found, as it announces a range of action to protect loyal broadband customers and help people get a better deal.
Ofcom figures show that 94% of UK homes and offices can now get superfast broadband, but less than half have taken it up.
And many people are paying more than they need to. Around four million households with old-style, basic broadband have passed their initial contract period and could switch to superfast for the same – or less – money than they currently pay.
The broadband market is highly competitive, with superfast broadband packages now available from around £20 a month. But while eight in ten broadband users are happy with their service, Ofcom wants to ensure the market works for everyone.
Sharon White, Ofcom Chief Executive, said: “We’re concerned that many loyal broadband customers aren’t getting the best deal they could. So we’re reviewing broadband pricing practices and ensuring customers get clear, accurate information from their provider about the best deals they offer.”
Under new rules proposed by Ofcom today , broadband companies – as well as mobile, landline and pay-TV providers – must alert customers about the best deal or ‘tariff’ they can offer. They must do so when any discounted deal customers are on is coming to an end, and also every year for longstanding customers who have stayed with them.
These measures, which build on proposals announced by Ofcom in July, will help give customers the information they need to save money, which could include shopping around and changing their provider.
In addition to these new customers alerts, Ofcom has today commenced a detailed review of pricing practices in the broadband market.
They are concerned some customers are paying more than others for similar or worse services, particularly when introductory offers have passed. For example, they estimate that customers who take a landline and broadband service together are paying an average of 19% more once their discounted deal has expired.
Their review will examine how companies change prices for customers over time, and who this most affects. Where they see evidence of harm, they will act to protect consumers – particularly those who may struggle to engage in the market.
In addition, they are currently reviewing how mobile operators charge their customers for handsets, when these are bundled with airtime in a single contract, and expect to publish findings next year.
Finally, to help people get the best broadband deal for them today, Ofcom has launched Boost Your Broadband, an information campaign and website. The campaign aims to demystify the broadband market, particularly for people who might be daunted by the choice on offer.
By following three simple steps broadband users can check their options, decide what they need and get clear, independent advice on how to go about getting the best broadband deal for them.