Is your broadband 'deal' really that great? New research suggests otherwise

Consumers are stung after the initial discount period

Some new research is claiming that while attractive broadband deals with big initial discounts can obviously be tempting to sign up for, the true cost of these sort of offers can mount up over the full length of the contract.

Broadband provider Relish has crunched some numbers based on figures and details from Ofcom and Broadband Genie, and found that, based on the estimate that a typical UK consumer stays with their broadband provider for an average of three years, the British public is wasting no less than £2.6 billion every year on unexpected line rental and broadband fees.

The research looked at the typical 12 month deals currently available in this country, and found that a user can end up spending up to an extra £156 every year by being locked into price increases after the initial first year discount price expires. Total that up across the number of broadband users in the UK, and you get the £2.6 billion figure.

Lack of clarity

These sort of deals are currently being scrutinised by both the Advertising Standards Authority and Ofcom with a view to making them more transparent.

Jasmine Birtles, Founder of Moneymagpie.com, who Relish partnered up with to commission the research, commented: "Our research has demonstrated that these supposed offers are not good deals. We need clarity on the true cost of a broadband package and what the 'deal' actually means.

"Relish and Moneymagpie are both supporting the move for more transparent advertising in order to make pricing breakdowns simpler and clearer, much like Ofgem has done with gas and electricity in recent times."

The deals the research looked at included offers from Sky, BT, TalkTalk and Virgin.