4million paying too much for slow internet

ONE in seven households are paying too much for old, slow broadband services, research has found.

The staggering statistic is revealed by telecoms regulator Ofcom as it prepares to force internet providers to alert customers to their best and cheapest services.

Of the estimated 27million households in Britain, some four million could be paying less for faster services if they switched.

Citizens Advice estimates this amounts to a £1.2billion-a-year penalty for customer loyalty which is delivering a windfall for broadband companies like Virgin Media, BT, Sky and others.

These firms have pushed up tariffs well above inflation in recent years, partly to fund multibillion-pound deals to buy the rights to show live football, rugby, cricket and boxing.

A spokesman for Ofcom said: ‘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.’

In theory, 94 per cent of UK households who have internet access could get superfast broadband, but less than half have signed up.

Ofcom is proposing that – from next year – broadband firms, as well as mobile, landline and pay-TV providers, will have to tell customers about their best available deal. This will apply both when their introductory deal is coming to an end and every year after that if they do not change their deal.

The regulator is reviewing broadband prices to examine why loyal customers pay more than others and whether vulnerable consumers, who struggle to understand how to shop around, need extra protections to ensure they get a good deal. Ofcom is also launching a campaign for customers, Boost Your Broadband, fronted by Gloria Hunniford.

Ofcom’s website tells people about the deals available in their area and offers impartial advice on how to find the best offer.

Some families are paying £220 a year more for broadband services than they need to, research by Which? found. A spokesman for the watchdog, Alex Neill, said: ‘Households are paying huge loyalty premiums for staying on the same tariff when they could be paying less for a faster internet service.’