Loyal customers pay more for broadband, mobile and TV

Online shoppingBroadband and phone customers can save more than £200 by finding better deals with other providers once they complete the existing contract and consider switching to new options, a latest consumer survey in the UK has revealed.

Renewing the contract usually makes the customers pay more for the same service which they were using on discounted price during the initial contract.

However, new customers who get price discounts at least for the first contract get opportunity to make savings. For subsequent contracts, the standard price applies with no promotional price discount.

Broadband contracts usually come with 12 or 18 month contract after which customers have all the freedom to quit the current providers and get cheaper deals from the competitively price telecom market.

Some providers agree to offer discounts to the existing customers who are loyal to them for years. However, many providers usually charge more after the first 12 or 18 month duration.

According to Which? consumer platform for reviews, there is no point of being loyal to a energy or broadband provider unless there is reward for such customers who are better advised to switch providers when have to pay more.

The survey also found that energy customers who are stuck with deals for more than 12 months or more, usually pay £316 more.

Over-all, UK customers can save £725 a year on energy, broadband, TV and mobile services by switching to better deals every year.