Broadband Guide
Broadband contract nasties
Updated: Tuesday 15 May, 2012
By Anthony Hill
Whether it's your first broadband package, or you're switching to a better deal, there are several things to watch out for when signing a contract...
- 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've signed a contract, then you will usually have no choice but to see it through. There are only a few situations where this won't be the case.
While some ISPs will charge you a set fee for leaving them before your contract is up, others will make you pay the remainder of your monthly payments. So either way, unless you’re having real problems and feel you have no other option, it might be better to stick it out.
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 their own business costs, most broadband providers charge more for each month of service if you've chosen not to sign a contract.
A low monthly price for a 12-month contract might be the same as just nine months on a 30-day "rolling contract" arrangement. So try to match the package with your circumstances. If you’re moving house in 11 months' time, it might be worth just signing-up for a whole year.
Video: What to watch out for in broadband contracts
Slowing you down for excessive use
Even when you’re signed-up to "unlimited" broadband, you could still be capped under the conditions of your provider's fair usage policy. The majority of broadband packages have one and some will penalise you for ignoring it.
There are various ways in which they’ll do this. At first you might just be asked to curb your usage, but if you keep exceeding the fair usage policy you might be charged extra, have your connection "throttled" to stop you downloading so much, or be forced to upgrade to a more expensive package. In extreme cases 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 usage. It’s quick to install and is easy to use, and you can even set alerts to stop you from going over your limit.
Use our broadband comparison calculator and check the details of your provider to see if you’re affected by a fair usage policy, or read our article on fair usage policies for more information and tips on how to avoid exceeding your limit.
A few providers now offer "truly unlimited" broadband packages that could suit those big downloaders among us with particularly high broadband appetites.
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 always check with the provider first. For more information on the ins-and-outs of switching, read our article on LLU broadband migrations.
All cable customers with Virgin Media (www.VirginMedia.com) also have to pay this fee if they want 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 in the press, but while TalkTalk invested more than £15million to resolve its main problems, others are yet to make improvements. If you’re having trouble with your ISP, there are steps you can take.
First, check if you’re free from contractual obligations. As long as you've 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 do our best to help. Please note this would not be 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.
How to handle your ISP
If you’re having ongoing issues with your provider make 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.
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 the Ombudsman is involved.
If your supplier isn’t a member of Ombudsman Services: Communications, you can still write to Ofcom, the UK’s telecoms regulator, for expert 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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