More than one in four broadband users are hit with unexpected charges that cost them an additional £36 a year on average.
According to Moneysupermarket.com, charges such as paper billing, non-direct debit or late payments and installation are earning Internet Service Providers (ISPs) around £160 million a year.
BT customers have to foot the most expensive of these bills, forking out an extra £51 per year on average, while Virgin Media (£42), Sky (£35) and AOL (£29) make up the rest of the top four imposing added charges.
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Ignorance isn’t bliss
The main reason why customers are unaware of charges is because they don’t pay enough attention to the contracts they sign.
According to Moneysupermarket.com, 25% of broadband users only skim read their agreement, while a further 8% don’t bother reading it at all.
As a result, 53% of Sky customers, 60% of Virgin Media customers and 65% of BT customers were unaware of the additional charges they incurred.
It’s never going to be scintillating reading, but taking a few minutes to properly understand your contract could save you up to £51 a year.
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Clawing back lost revenue
"Although we've seen telecom bills fall in the past year, providers are still clawing back millions with unnecessary charges, many of which are unfair,” says James Parker, mobiles and broadband manager at the price comparison site.
“People without an email address or unable to pay by direct debit shouldn't be unfairly charged. Ofcom should look at either eradicating these charges or imposing strict caps to protect the consumer.”
"With this in mind its essential customers thoroughly read their contracts. By not doing so, people are unaware of any extra costs that may be lurking in the small print and, as a result, could end up with a huge unexpected bill at the end of the month.
Five things customers should look out for:
- Charges for paying by non-direct debit methods
- What is your download limit? Does you provider charge if you go over it?
- How much does it cost to call your provider if you have a technical problem?
- Does it cost you to cancel your contract or if you move home in the first 12 months?
- Does your provider charge a setup fee?
Spare a thought for customer service
With ISPs pricing their deals ever more competitively, customer service becomes an increasingly important factor in which provider you choose.
Take the time to read up about the ISPs your interested in on any of the various tech forums you’ll find online.
According to the most recent survey compiled, Sky Broadband was voted best for customer satisfaction survey of the seven largest broadband providers in the UK.
Although the British Broadband Users survey focused solely on the largest players, it did flag up O2 and PlusNet as two small providers that achieved particularly high levels of customer satisfaction.
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