Big four broadband providers price increase to impact 24m households

The UK’s ‘Big Four’ internet service providers Sky, Virgin Media, BT and TalkTalk are set to hike prices which will impact 24 million households, according to comparethemarket.com.

The average price is going to increase by £3.03 per month or the equivalent of £36.39 per year. The total cost to consumers is estimated to be £909 million per year.

Most (78%) households have not switched provider in over a year, according to a previous study from comparethemarket.com, and those that have do switch often stick with a mainstream supplier. Research shows that the Big Four take 81% of switches within the market.

Consumer inertia is playing into the dominance of the ‘Big Four’, with more than a third (34%) of non-switchers admitting to never having changed provider in their lifetime and almost a fifth (17%) considering it too much hassle to switch.

Holly Niblett, Head of Digital at comparethemarket.com, said “We know that many are ‘switched off’ about switching in the broadband market which is how providers make their money. When one provider moves to increase its prices, the rest usually follow. However, people don’t need to swallow the cost. Usually, you can exit your contract early without a charge up to 30 days of being notified of a price increase.

“Often providers will offer new customers the best deals in an attempt to lure them in, so it’s worth seeing if you can switch and save significant amounts in the process. You can also compare packages to make sure you’re getting a deal with the right speed at a price that works for you.”