Millions of individuals with broadband, landline, and pay-TV bundles who are out of contract are forking out an extra £17 a month – that’s £204 annually more than they need to, recent revelations show. Industry watchdog Ofcom has released new figures indicating that loyal customers who remain with their provider after their contract has ended are often charged substantially more than new customers.
Moreover, Ofcom has highlighted that smaller internet and telecoms service providers tend to offer significantly lower prices compared to the big names in the sector. The regulator advised that out-of-contract customers “could make significant savings” by comparing the market and opting for the most competitive deals available.
Ofcom commented: “Our data shows that 36 percent of dual-play fixed broadband and landline customers and 32 percent of triple-play fixed broadband, landline and pay-TV customers were out-of-contract at the end of June 2024. Their bills were 18 percent and 16 percent higher respectively than in-contract customers.”
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In terms of cash, it noted that customers with broadband, landline, and pay-TV bundles who are out of contract are typically shelling out £17 a month more. Meanwhile, those with just broadband and landline packages are paying an average of £7 a month extra.
Ofcom said loyal customers who stick with a supplier beyond the end of their contract are typically being charged much higher than a new customer -Credit:Getty
Ofgem’s research also discovered that ultrafast broadband deals are often less expensive when sourced from smaller providers, with potential annual savings of up to £156. The report found that promotional offers for 900 Mbit/s to 1 Gbit/s broadband services from independent full-fibre network firms begin at £26 per In comparison, the cheapest similar service from a larger provider costs £39 per month. However, Ofgem’s research found that mobile phone prices have fallen in real terms over the past year.
The average price of a basket of mobile services reflecting the average person’s use was 5 percent lower in real terms in 2024 than in 2023 and 23 percent lower than in 2019 – despite average data use trebling over this period. Average prices for all the SIM-only service categories also fell year on year, by between 1 percent and 11 percent. Customers who buy a SIM-only plan and a handset separately pay around 25 percent or £200 less than customers on tariffs that include airtime and a handset. A comparison of prices across six countries found the UK had the joint lowest fixed broadband prices with Italy – coming in cheaper than France, Germany, Spain, and the US.
The UK has the second-cheapest standalone mobile prices – higher than France, but lower than Germany, Italy, Spain, and the US. Broadband and telecoms giants have been under pressure to support low income customers with cheaper social tariffs. They are priced between £12 and £23 a month for broadband and £10 to £12 a month for mobile – helping save broadband customers around £220 a year on average. By June 2024, around 506,000 customers had taken advantage of these offers – an increase of 125,000 since September 2023. Despite this substantial growth, take-up of social tariffs remains low as a part
Ofcom’s recent research revealed that a staggering 69 percent of eligible broadband customers are completely oblivious to the availability of low-cost social tariff deals. Natalie Black, Ofcom’s Group Director for Networks and Telecoms, commented: “Mobile and broadband services in the UK remain competitively priced and generally compare favourably to other countries. With significant savings to be had, especially for the fastest packages, it’s important as ever for customers to shop around. .
“It’s also encouraging to see more people taking advantage of the wider range of social tariffs now available, but with many more eligible customers unaware, there’s still a job for communications providers to do to further promote this vital support.”