Brits wasting £1.5bn on out-of-contract broadband pricing


This is according to the latest research from broadband comparison specialist uSwitch

Pricing differences between in-contract and out-of-contract broadband is costing Brits more than £1.5 billion a year, according to the latest research from uSwitch.

The internet comparison specialist claims those who don’t switch to a new contract pay £105 more a year than those who do. It added the charges for out-of-contract has increased by 38 per cent for copper and 19 per cent for fibre.

For example, out of contract pricing for those with fibre broadband cost £35.16 last year. The same fees in-contract would have been £29.65 five years previously in 2011.

uSwitch also claims line rental pricing has has increased by 37 per cent between 2011 and 2016. This is an average of £216 per year – £58 a year more than in 2011. The average monthly line rental cost in October last year across the majority of broadband providers cost £17.93, according to uSwitch. This is a £4.83 difference compared to the same period in 2011.

The research comes as Sky and BT announced they would be upping line rental prices. Sky, for example, is to increase its line rental pricing by 9.1 per cent from £17.40 per month to £18.99 per month from March. BT has also announced price increases across its broadband, TV and sports packages, with these coming into affect from April 2.

uSwitch broadband analyst Ewan Taylor-Gibson said: “A combination of soaring line rental costs and out-of-contract pricing has really hammered broadband users over the past five years.

“Most broadband contracts are 12 or 18 months long, so if you’ve not moved in the past year, you might well find you’re out of contract and paying, on average, 38% more than everyone else.”