{"id":37385,"date":"2024-03-01T00:01:08","date_gmt":"2024-03-01T00:01:08","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=37385"},"modified":"2024-03-01T10:50:26","modified_gmt":"2024-03-01T10:50:26","slug":"new-data-indicates-sharp-uk-decline-in-broadband-isp-switching","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2024\/03\/new-data-indicates-sharp-uk-decline-in-broadband-isp-switching.html","title":{"rendered":"New Data Indicates Sharp UK Decline in Broadband ISP Switching"},"content":{"rendered":"

A new study by Broadband Genie<\/a>, which harnesses data from actual consumer migrations, has claimed that there was a decrease of 38% in broadband ISP switches during the period of 15th December 2023 to 12th February 2024 and as a result UK bill payers are estimated to be \u00a353m worse off in lost savings.<\/p>\n

The raw switching data appears to have been extracted from the Awin platform, which is used by a lot of price comparison sites and services to help track sales of broadband, mobile and phone products. As above, this data showed a 38% fall in broadband switches compared with the same period last year.<\/p>\n

NOTE:<\/strong> Awin reported a total of 863,536 broadband switches across the whole of 2023.<\/div>\n

According to the study, the fall coincided with the introduction of two key developments – the Advertising Standards Authority<\/a>’s (ASA) new transparency guidance for how ISPs should communicate mid-contract prices hikes to consumers (here<\/a>), and Ofcom<\/a>’s proposal to ban in-contract price rises that are linked to inflation and percentage-based changes (here<\/a>).<\/p>\n

The study claims that, on average, shoppers are estimated to save \u00a3162 a year by switching their broadband to a new provider – reflecting a total of around \u00a3140m when using the annual figure of 863,536 broadband switches. The \u00a353m figure above is essentially 38% of that \u00a3140m, but it should be said that the 38% is derived from only part of the year (mid-Dec to Mid-Feb) and we don’t know if this trend held for the whole of 2023.<\/p>\n

In any case, the suggestion here is that the recent rule changes seem to actually be discouraging switching, which is perhaps not the outcome that either the ASA or Ofcom<\/a> would have wanted.<\/p>\n

Alex Tofts of Broadband Genie said:<\/strong><\/p>\n

“The ASA intended to reduce the confusion that bill payers experience when they see a jump in their contract, but sadly it\u2019s had the knock-on effect of scaring customers off trying to save money. Our analysis indicates that the new [ASA] rules are a clear deterrent for shoppers looking to switch their deal.<\/p>\n

While we fully support Ofcom<\/a>’s efforts to curb inflation-linked price hikes, the only solution is to ban mid-contract price rises outright. If smaller providers such as Hyperoptic<\/a> and Cuckoo<\/a> can afford to commit no price rises, there is no reason why the larger providers shouldn\u2019t follow suit.”<\/p><\/blockquote>\n

On the other hand, this is only one set of data, and we don’t yet know if it holds true from other sources (e.g. Ofcom). Personally speaking, ISPreview didn’t notice much of a notable change in our own switching data for the same period, but that’s a very site-specific thing and clearly the overall data from Awin is indicating a wider trend.<\/p>\n

The survey also includes a perhaps poorly timed quote from Cuckoo<\/a>, which is one of several smaller players that have committed not to do mid-contract price hikes. But Cuckoo<\/a> has also just made headlines by booting some of their existing customers to another ISP (here<\/a>), which may make this comment difficult for some to read. As the CEO, Tommy Toner, says: “At Cuckoo, we value our customers. People deserve to be treated fairly<\/em>..” and we’ll just stop at that.<\/p>\n","protected":false},"excerpt":{"rendered":"

A new study by Broadband Genie, which harnesses data from actual consumer migrations, has claimed that there was a decrease of 38% in broadband ISP switches during the period of 15th December 2023 to 12th February 2024 and as a result UK bill payers are estimated to be \u00a353m worse off in lost savings.<\/p>\n","protected":false},"author":1,"featured_media":25443,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[99,36,38,34],"class_list":["post-37385","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-asa","tag-ofcom-regulation","tag-politics","tag-statistics"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/112017498078083235","error":""},"yoast_head":"\nNew Data Indicates Sharp UK Decline in Broadband ISP Switching - ISPreview UK<\/title>\n<meta name=\"description\" content=\"A new study by Broadband Genie, which harnesses data from actual consumer migrations, has claimed that there was a decrease of 38% in broadband ISP\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2024\/03\/new-data-indicates-sharp-uk-decline-in-broadband-isp-switching.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Data Indicates Sharp UK Decline in Broadband ISP Switching - 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