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Broadband Internet Consumers Still Preferring Shorter ISP Contracts

Posted: 11th Oct, 2010 By: MarkJ
ispreview internet poll uk broadband contractsThe results from 536 respondents (polled in September 2010) to our latest monthly survey have revealed that half (50%) still preferred to take a shorter (1 month or less) contract with their broadband ISP package, as opposed to tying themselves down via a longer deal.

In addition, 42.9% of respondents said they had no plans to swap provider when their current contract ends, although a further 30.2% did plan to switch and another 26.8% remain undecided.
How long is your current broadband/bundle contract (pick closest)?
1 Month / No Contract - 50%
12 Months - 28.3%
18 Months - 9.7%
24 Months+ - 3.5%
3 Months - 2.9%
I don't know - 2.9%
6 Months - 2.4%


Do you plan to swap ISP when your contract ends?
No - 42.9%
Yes - 30.2%
Maybe - 26.8%
The majority on longer contract deals are most likely to be adopting service bundles to save money, as opposed to standalone broadband packages. This is partly supported by the fact that our previous survey revealed how 35% of respondents were taking a bundle. That's almost equivalent to the 40% or so on 12-18 Month contract packages.

Bundles merge several communication services (phone, mobile, tv and broadband) from a single provider, usually trading off a lower price point for longer contract terms (usually 12 or 18 months). This allows the ISP a greater degree of financial security and helps to mitigate the initial cost reduction created by offering a bundle.

However some providers might be missing a trick. The flexibility offered by shorter contract terms is very attractive and operators could benefit from offering shorter 'options', much as PlusNet and Be Broadband already do. This might attract an extra cost but there is clearly a section of the market that continues to be wary of longer deals.

It's interesting to compare these results with an almost identical study that we ran back in November 2008. This appears to show that a noticeable proportion of those on 12 Month contracts have moved onto shorter deals. Once bitten, twice shy?
How long is your current ISP contract (from start to finish)?
42% - 1 Month / Don't have one
39.6% - 12 Months
10.8% - 18 Months
3.6% - Over 24 Months
2.2% - 3 Months
1.5% - 24 Months
0% - 6 Months
This month's new survey simply asks "How much online video content do you watch (weekly)?" and questions what impact this has had, if any, on your broadband package and ISP choices. Vote Here.
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