Broadband Guide

Broadband contract nasties

Updated: Tuesday 04 January, 2011

By Editorial - news@consumerchoices.co.uk

Whether you’re looking for your first broadband package, or want to switch away from your current provider for a better deal, there are a few things you should watch out for.

• 1. Exit penalties
• 2. When no means no
• 3. Slowing you down for over-use
• 4. Switching
• 5. Non-performance
• 6. How to handle your ISP

Exit penalties

If you have signed a contract, then you will usually have to see it out, unless there are some extenuating circumstances affecting your case.

Some ISPs will charge you a set fee for leaving them before your contract is up, while others will make you pay the remainder of your contractual payments, so unless you’re having real problems with your ISP, it might be better to wait until your contract has terminated.

When no means no

Many people are surprised to find out that their “no contract” broadband deal isn’t quite so straightforward.

In order to cover costs, many ISPs charge more per month if no long-term contract has been signed. A very low per-month price for a 12-month contract might cost the same as nine on a rolling monthly contract, so try to match the package with your circumstances. If you’re moving house in 11 month’s time, it might be worth just signing up for a whole year.

Although these packages mean that you can keep an eye out for better deals - which are coming out all the time - and switch easily, you should still be careful as you might end up having to pay an exit fee if you want to leave within the first 12 months. This is because they have to pay BT (www.BT.com) to connect you, and if you don’t stay with them long enough, they won’t even recover this cost.

Video: What to look out for in broadband contracts

Slowing you down for over-use

Even if you’ve signed up to an "unlimited" broadband package, you could still be capped under the conditions of your ISPs fair usage policy. The majority of broadband packages have a fair usage policy rather than a clear, publicised download limit, and most ISPs will penalise you for exceeding this “limit”.

There are various ways in which they’ll do this. First you’ll be asked to curb your usage, but if you continue to breech the fair usage policy you might be charged for excess usage, have your connection throttled to stop you downloading so much, or be forced to upgrade to a more appropriate - but more expensive - package. In extreme circumstances they might even terminate your contract.

If you’re not sure how much you actually download, why not use our free Broadband Download Monitor to track your internet use. It’s quick to install and is easy to use, and you can even set alarms to stop you going over your limit.

Use our Broadband comparison calculator and check the details of your provider to see if you’re subject to a fair usage policy, or read our article on Fair usage for more information and tips on how to avoid exceeding your limit.

Switching

All standard ADSL providers have to issue and accept broadband Migration Access Codes (MACs), allowing you to switch from one provider to the next without a break in your connection.

However, as technology has progressed, and more providers have installed the cheaper local loop unbundling (LLU) technology in local exchanges, migrations have become more complicated. Switching from full LLU - where both your broadband and home phone is provided by your ISP - with TalkTalk (www.TalkTalk.co.uk) for example - back to the BT network will mean a break in your connection and maybe even a fee to have your line returned to the BT network. This could cost you as much as £130 but BT often runs promotions to cut the cost so check with the provider first.

Click here to read our article on LLU broadband migrations.

All of Virgin Media's (www.VirginMedia.com) 3.5 million cable broadband customers would also have to pay this fee if they wanted to return to BT’s copper wire network and an ADSL broadband connection.

Read our article on Switching broadband for more tips.

Non-performance

The customer service and installation issues initially faced by TalkTalk were well documented, but while TalkTalk invested more than £15 million to solve these issues, others still having some problems. If you’re having trouble with your ISP, there is something you can do.

First, check if you’re free of your contractual obligations. As long as you have signed a contract you will have to see it out or incur a cancellation fee - or pay the remaining value of your contract. If you’re unsure of your contractual duties, contact us and we will check for you (note that this is not legal advice).

If you’re still under contract but want to leave anyway because of poor service, read the details of your warranty. Has your supplier made an agreement they may have breached? If so, you might be able to terminate your contract with them on these grounds, but make sure you read the small print and seek advice first.

This guide isn’t legal advice so you should get in touch with the Which? Legal Service too (see useful links). For £51 a year, you can get easily accessible, reliable legal advice so you can make sure you know your rights before relaying them clearly to your service provider.

How to handle your ISP

If you’re having ongoing issues with your provider keep a record of each time you experience a problem. Take a screen grab of your error message, or keep a detailed written log.

Keep a diary of calls made to customer services; who you spoke to and how long you had to wait. Calls to premium or 0870 numbers can be expensive - for example, 10 calls for 10 minutes at 15p per minute is £15. Call costs to customer service centres can range from free, up to £1 a minute, so check first and keep your phone bills as a record of the total call charges.

This information may prove to be crucial if you want to cancel while still within your minimum contract period. Again you should talk to Which? who can advise you on how to word a formal letter to cancel your contract.

As a very last resort, and only after a minimum of three months of ongoing problems, you could write an open letter to Ombudsman Services: Communications, the telecommunications watchdog. The majority of ISP providers are members of the body, which was set up to investigate complaints made by telecoms customers.

While the service is free for members of the public, your supplier will actually be charged if it is investigated, so you will be taken more seriously if they get involved.

If your supplier isn’t a member of Ombudsman Services: Communications, you can still write to Ofcom, the UK’s telecoms regulator, for help.

It’s always a good idea to send a copy of your letter to the head of customer services at your supplier for added emphasis.

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