Loyal broadband customers hit by 43% price increases

Broadband customers are being punished for their loyalty with higher prices, according to new research.

Citizens Advice analysed the cheapest deals offered by BT, Sky, EE, Talktalk and Virgin Media, and found that prices rocket by an average of 43 per cent a year once introductory deals come to an end.

This amounts to £113 a year, which is five times more than customers were paying in 2011 to stay on the same deal.

The charity has called on internet service providers (ISPS) to be much clearer about how much customers will pay once the introductory offer ends, rather than burying it in the small print. It claimed that more than a third of customers were unaware that prices jumped so much.

It added that according to a recent survey customers over 65 are more likely than those younger to remain with their existing ISP, meaning their “loyalty penalty could reach over a thousand pounds”.

Gillian Guy, chief executive of Citizens Advice, said that because people stay with their ISP for an average of four years, these extra costs “can run into hundreds of pounds”.

She wants the Government to examine the problem, saying it should scrutinise ISPS to the same extent as they do energy firms.

The report recommends that Ofcom should identify “vulnerable customers” and look at how they could be protected from the impact of price rises. Capping broadband prices is one solution, Citizens Advice said, “similar to the pre-payment meter cap in the energy market”.

The price rise varies greatly between ISPS. BT’S increase is the highest, at 67 per cent, while Virgin Media’s price stays the same (see full details on Citizens Advice’s site: www.snipca.com/24072).

Have you been penalised for your broadband loyalty? Let us know: letters@computeractive.co.uk