Broadband prices rise by an average 43% when fixed term deals end
According to a Citizens Advice report, people on the cheapest basic broadband deals are hit with an average price rise of £113 a year once their deal ends – with many unaware they face an increase in cost, finds Citizens Advice.
A new report from the national charity reveals that more than a third (35%) of broadband customers don’t realise they could face price hikes by staying on the same contract with their provider after their initial deal ends.
With broadband customers staying on the same contract for 4 years on average, Citizens Advice warns customers are being charged a ‘loyalty penalty’ for remaining on the same deal.
Citizens Advice wants broadband providers to help customers avoid loyalty penalties by being much clearer about how much their services will cost after the initial fixed deal ends.
Analysis of the cheapest basic broadband deals from the 5 largest suppliers finds that prices go up by an average of 43%, or £9.45 extra a month, at the end of the fixed contract period. This adds an additional £113 a year to a customer’s bill.
The table in the report compares the initial monthly price of a fixed contract and subsequent monthly price of the 5 largest suppliers’ cheapest basic broadband deals as advertised on their website on 10 March 2017. The contract length for the cheapest deal varies across suppliers.