‘Higher broadband costs’ for over-55s
INTERNET: People over 55 in the UK are most at risk from broadband price rises because they are unwilling to switch providers, new research suggests.
Broadband provider Zen Internet indicates that 83 per cent of broadband users aged 55 and over had not switched provider in the last year, if ever.
PEOPLE AGED over 55 in the UK are most at risk from broadband price rises because they are unwilling to switch providers, new research suggests.
A study by UK broadband provider Zen Internet indicates that 83 per cent of broadband users aged 55 and over had not switched provider in the last year, if ever.
The research says, as a result, they are leaving themselves at the mercy of end-of-contract price rises.
According to Ofcom figures released earlier this year, about 20 million customers in the UK are already out of contract, including 8.8 million broadband customers, with many spending more than they need to.
It claims every day 25,000 broadband customers come to the end of their contract, which usually leads to an automatic price hike as they continue on a monthly rolling deal.
New rules introduced in February mean phone, broadband and pay-TV customers must now be alerted when their current contract is coming to an end.
Zen Internet’s research found that 36 per cent of those who had not switched said it was because they feared they would get a worse service elsewhere – a figure which rose to 43 per cent among the over-55s.
In contrast, the study indicates younger people – those aged between 16 and 24 – were far more open to switching providers, with 55 per cent having done so in the last year.
Richard Tang, founder and chairman of Zen Internet, said: “For years the broadband industry has taken advantage of consumer inaction and fears of switching by hiking up prices at the end of contracts and sometimes even during – the so-called ‘loyalty tax’.
“While recent Ofcom legislation has made it easier for everyone to be more aware when their contract is ending, most providers will still bump up the cost if consumers don’t act.
“Even in today’s climate, consumers should not be afraid to search for the best provider – one that will deliver a great and reliable service, and avoid the price increases that can add up over time.”
Zen’s research suggests fears over switching providers are unfounded in many cases, with
Richard Tang, founder and chairman of Zen Internet.
nearly half (46 per cent) of those asked saying they found the process easier than expected.
“Reliable broadband should be a given, but sadly some consumers are in the unfortunate camp of receiving poor and patchy service at a time when it’s needed the most,” Mr Tang said.
“Despite the current situation, switching is as simple as it’s ever been and those out of contract should be looking to make that change now.
“For those still in contract, it’s useful to be aware of when the contract is coming to an end so they can be prepared to move when it does.”
The news comes after it was revealed that millions of Britons have struggled with broadband issues during lockdown, with a spike in outages in March after many people were forced to work from home.
And a survey by 4G Internet found that a third of people questioned suffered internet issues during lockdown.
The Community Broadband Network urged the Government to prioritise more reliable fibre connections, saying the UK is falling behind the rest of the world in terms of internet speed.
It comes as North Yorkshire has announced that it is rolling out the fourth stage of an ambitious project to bring superfast broadband to North Yorkshire communities.
Consumers should not be afraid to search for the best provider.