Six Million Brits Overspending On The Wrong Broadband Package

June 8, 2007; 08:53 AM
A survey shows that more than half of UK broadband users are spending approximately £132 million a month on unnecessary broadband packages because they fear the strict penalties that will be imposed on them if they exceed download limits.

BroadbandChoices.co.uk, a leading broadband comparison service in the UK, asked 2,000 users about the monthly download limits that they have with their service providers. 51 per cent of respondents said that they under-used the monthly download limit which they paid for, meaning that 6.63 million broadband users in the UK could be overpaying for connections they simply don't need.

 By getting the right package, this group could cut their broadband bills by up to £10 per month, which would represent an estimated monthly saving of approximately
£66 million.

Respondents using BroadbandChoices.co.uk's Broadband Download Monitor, which tracks downloads and alerts users as they get near their limit, cited the following reasons why they overspend on an unnecessary broadband package:

1. "I have a fair usage policy that I must adhere to"
2. "I'm worried I'll get an unexpected bill"
3. "My ISP will restrict my download speed if I exceed my limit"

BroadbandChoices.co.uk user Russell Fear saved money after using the Download Monitor: "I was using completely the wrong broadband package. I was on an unlimited download package as I do use the internet a lot and I figured that if I went for a standard package I would forever be charged for breeching my limit.

"I used BroadbandChoices.co.uk's Download Monitor and it turned out I was only using around 8GB per month - way less then I was expecting. I then went away and sourced a package that is not only £14.99 per month and has an 8GB limit, but that allows free downloading at off peak times. So not only has this saved me money, but it has driven me to find a much superior product."

Michael Phillips, product director of BroadbandChoices.co.uk, said: "It's human nature to fear the unknown and as broadband users we don't feel in control. It appears we would rather spend too much on a package we don't need than risk the wrath of our service provider if we should use too much capacity.

"ISPs should abandon marketing language such as 'unlimited', as it misleads and confuses such users that don't understand what a download limit is. However, this is also a case of 'buyer beware' and broadband users should also seize the initiative and find out the amount of data they are actually using on a monthly basis to check that they aren't overpaying for a package that they don't need.

"While it may feel that every man and his dog is downloading films, using MySpace and watching TV online, many of us have very simple online habits, such as a bit of online shopping and banking. These individuals could save over £100 a year by switching to the right package," concluded Phillips.

There are 13 million** broadband connections in the UK representing an estimated average spend of £250million a month*.

If you are paying too much for your broadband package, BroadbandChoices.co.uk would recommend:

1. Check your usage by downloading a usage meter - there is a free usage meter available on broadband download monitor
2. Ring your provider, they may offer you a new deal or a lower-end, more suitable package.
3. If this does not work, switch to a light user package if you are using less than 5GB per month (see list below).
4. If you end up switching providers, recycle your modem. If you use your existing modem you could get an even cheaper package with a lower monthly cost.

Top light user packages

    * PlusNet Option 1- 8Mb (1GB download limit) £9.99 per month (no set up fee and free 1 port router)
    * NamesCo HomeStart - 512K (2GB download limit) £11.95 per month (1 month contract / £50 set up fee or free if you are switching from another ADSL provider / no modem included)
    * Eclipse Option 1 - 8Mb (2GB download limit) £14.99 per month (1 month free if switching / free modem / excellent customer service)
    * Tesco Broadband - Value - 512K (3GB download limit) £13.97 per month (free modem/set up)


    * Ofcom December 2006 average broadband package cost £20 per month

** Ofcom - The Communications Market: Broadband, 2 April 2007

Notes to editors:

What is a fair usage policy?

Even "unlimited" broadband packages can be capped by the service provider. Most companies who sell an "unlimited" service also have a "fair usage policy", which imposes limits on a user's downloading of data, music, movies and photos etc.

Fair usage is the broadband industry's attempt at keeping cyber traffic down to protect people from excessive downloading of other broadband users as it is likely that they will share that connection with the rest of the street. This means that a big downloader could be slowing down the broadband connection of up to 50 other people.

If broadband users continue to exceed limits with 'over-sized' downloading, their ISP is likely to take action. This could take the form of reducing their connection speed, therefore limiting the amount that can be downloaded; restricting a user's usage at peak times; charging for excess usage; or restricting use of particular websites. In extreme cases, they might terminate the contract, cutting off the internet until the user can get a new connection.

About BroadbandChoices.co.uk: http://www.broadbandchoices.co.uk

Broadband Choices is the second biggest broadband comparison service in the UK. Unlike other comparison sites, BroadbandChoices.co.uk doesn't just focus on price but total package value. Consumers can now refer to this impartial Website to access the latest broadband advice and deals, to help them make the right choice.

What makes Broadband Choices different:

    * Most comprehensive range of consumer guides and advice
    * Emphasis on value rather than cost alone
    * Variety of ways to rank products according to individual priorities
    * Detailed product information
    * A community of like minded people where you can read reviews or share your thoughts
    * Up-to-date information regarding key industry developments
    * Access to bespoke interactive tools (speed tester & download monitor)