According to a report by telecoms regulator Ofcom, about 1.5 million UK households pay a higher monthly fee than necessary for their mobile phone service by paying the same amount even after their contracts have ended.
Around four million homes that have standard ADSL copper broadband could benefit by upgrading to a superfast broadband package while still paying the same amount, or even less.
In its report, Ofcom said that the price disparity is most pronounced for BT’s ADSL customers, who have had the cost of their service increase to £42.99 a month over the past two years, while the cost for BT’s superfast (fibre-to-the-cabinet) services begin at £24.99 a month.
The regulator noted that the price differential is not as large for the other major broadband providers.
Last year, Ofcom said that 34% of UK households could benefit from higher broadband speeds by upgrading to superfast broadband service. About 95% of the country now has superfast service of 24Mbps available.
Nevertheless, the regulator concluded that on average, most customers are getting value for their broadband and mobile phone services.
Ofcom noted that data usage over household broadband and mobile connections increased by about 45% annually, while the average monthly amount spent by households decreased to £117 over the last ten years.
Ofcom’s Consumer Group Director, Lindsey Fussell, said: “Overall, most people are getting good value for their phone and broadband services. We’re all using these services more than we were a few years ago, and on average, we’re paying less. But there are areas where people could get better value for money.”