If you are considering changing broadband provider then read our impartial guide below on how to make the change and avoid the pitfalls.
Read the small print of your broadband contract
By now you should feel more informed and empowered about the options
available to you. The next step is to check your existing contract
terms (or service warranty) carefully.
The most important things to check for are:
1) Are you free of your contractual obligations? Almost all
broadband (or bundled) products have some form of contractual agreement
that is usually over a minimum period. Twelve or 18 months are the two
most common, however, some providers also offer deals with no minimum
contract. These are slightly misleading because although technically
they are without a minimum contract length, you will still have to pay
some form of cancellation fee if you leave inside the first 12 months
(which is a kind of contractual agreement anyway).
Either way, if you are free of your contract obligations this means
that you can leave your provider without penalty or charge. If not
then you may be subject to a cancellation fee via their 'cancellation
policy'.
2) What's the cancellation policy? One of the most common
complaints from users on our forum is a provider chasing after a
customer for cancellation fees or problems with billing. It will
state quite clearly in the contract what the cancellation policy
is. In most cases the cancellation policy is full payment of the
monthly subscriptions left over from the remainder of the contract
period (ie for an 18-month contract this can be a fairly big sum
of money). Some operate a fixed charge for cancellation; others
calculate a percentage of your monthly subscriptions over a set
period as a cancellation fee. Above all else, make sure you
understand the cancellation policy before you consider changing
provider.
3) Work out the cost of cancellation against savings. If
you're inside a minimum contract period you will have to pay a
cancellation fee - however, it can often work out more cost
effective to pay this fee in order to move to a more competitive
broadband deal straightaway. Try to calculate the cost of
cancellation (ie your cancellation fee) against any potential
savings by changing provider (ie cheaper monthly subscriptions,
money off line rental fees, free or cheaper call charges, etc)
to decide if it's cheaper to change provider now, pay the
cancellation fee and still save money.
4) Are there any hidden charges? Some providers have hidden
charges - these can usually be found in your contract terms. Hidden
charges come in various forms, for example the provider might request
a fee to move your broadband connection to a new home, or ask you
to pay a one-off charge for a speed upgrade. Worse still, some
providers might ask for a monthly fee for a service that is free
in the first year, or a payment to cover the free hardware they
gave you to use their service. Some people argue that a 'free
broadband' product by its very nature hides charges because it
is impossible to get something for nothing. Be aware of hidden
charges as they can hit you in the pocket and they can also help
you decide whether it's worth changing provider.
5) Have they breached their service agreement? Several people
want to change provider because they are not happy with the service.
Check the section in your contract that relates to the service
agreement (ie what they say they agree to deliver to you as a
service). If you are unhappy with their service, you may find that
they have breached their agreement in terms of what they said they
would give you as a service. The most common breaches of service
agreements are the length of time it takes to connect to the service,
a problem with the speed of your connection, or an overall lack of
service/customer support. If your current provider becomes difficult
about letting you move on, or asks for a cancellation fee, you may
be able to argue that since they have breached their service
agreement you can leave without penalty or charge. NB: Only use this
approach if you can argue convincingly that the provider has not
delivered what was in the service agreement.
6) Find out where to get your MAC - Many consumers don't
check beforehand where to obtain a MAC from their existing ISP so
that when they do actually need one they're surprised to find they
can't get it or don't know who to contact. If you can, find out
what phone number to call at your ISP to obtain your MAC even if
you don't need it straight away as it should speed up the process
of changing in future. The following is a list of phone numbers
for some ISPs you can call to request your MAC - but check with
your existing provider to make sure it's the right number.
