ISPreview Survey Finds UK Consumers Prefer Shorter Broadband Contracts
The latest ISPreview.co.uk survey has discovered that most UK consumers are continuing to ignore cheaper but longer broadband contracts in favour of shorter (1 Month or less) and more flexible promotions at a higher price.
London, United Kingdom, October 13, 2010 --(PR.com)-- The results from 536 respondents to ISPreview.co.uk's latest survey have revealed that half of UK consumers (50%) still prefer to take a shorter (1 month or less) contract with their broadband ISP package. In addition 43% of respondents said they had no plans to swap provider when their current contract ends, although a further 30% did plan to switch and another 27% remain undecided.
12 Month contracts proved to be the next most common with 28% of consumers adopting them alongside their current deal, followed by another 10% on 18 Month packages. Just 3.5% had a contract of 24 Months or longer, 3% ran off 3 Months and a tiny 2% used 3 Month deals. Thankfully only 3% had no idea how long their broadband service would tie them down, which shows that the majority of consumers still knew what they were signing up for.
"The majority of consumers on longer contract deals are typically adopting service bundles to save money, as opposed to standalone broadband packages," remarked ISPreview.co.uk's Founder, Mark Jackson. "This is borne out by the fact that our earlier August 2010 survey revealed how 35% of respondents were taking a bundle. That's roughly 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. This allows the ISP a greater degree of financial security (lower churn) and helps to mitigate the initial cost reduction created by offering a bundle.
"Some broadband ISPs 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 pioneers 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," concluded Jackson.
In addition, ISPreview ran an almost identical survey at the same time two years ago. The results were similar, except that 42% preferred a shorted 1 month or less contract and 39.6% were on 12 Month deals with nobody on 6 Month plans. This suggests that a noticeable amount of consumers (approximately 10%) have moved from longer 12 month deals and on to shorter 6 or 1 Month plans. Once bitten, twice shy?
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12 Month contracts proved to be the next most common with 28% of consumers adopting them alongside their current deal, followed by another 10% on 18 Month packages. Just 3.5% had a contract of 24 Months or longer, 3% ran off 3 Months and a tiny 2% used 3 Month deals. Thankfully only 3% had no idea how long their broadband service would tie them down, which shows that the majority of consumers still knew what they were signing up for.
"The majority of consumers on longer contract deals are typically adopting service bundles to save money, as opposed to standalone broadband packages," remarked ISPreview.co.uk's Founder, Mark Jackson. "This is borne out by the fact that our earlier August 2010 survey revealed how 35% of respondents were taking a bundle. That's roughly 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. This allows the ISP a greater degree of financial security (lower churn) and helps to mitigate the initial cost reduction created by offering a bundle.
"Some broadband ISPs 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 pioneers 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," concluded Jackson.
In addition, ISPreview ran an almost identical survey at the same time two years ago. The results were similar, except that 42% preferred a shorted 1 month or less contract and 39.6% were on 12 Month deals with nobody on 6 Month plans. This suggests that a noticeable amount of consumers (approximately 10%) have moved from longer 12 month deals and on to shorter 6 or 1 Month plans. Once bitten, twice shy?
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ISPreview.co.uk
Mark Jackson
440120278234
www.ispreview.co.uk
Mark Jackson
440120278234
www.ispreview.co.uk
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