BT, Virgin Media and Sky may have some of the fastest speeds and coverage in the UK, but just can’t compete with what some of their smaller competitors are now offering. Joining most of the UK’s major Internet Service Providers (ISPs) usually means getting your pen out and getting lengthy contracts.
For example, BT’s latest broadband deals require customers to stay with the company for at least two years, while Sky and Virgin Media O2 both want consumers to agree to an 18-month contract. Once you’ve all signed up, it can be difficult to go without paying a penalty and this is where some newbies to the market say they have an advantage.
Cuckoo is just an ISP that offers ongoing monthly contracts, which means users can leave when they want without fear of additional fees.
The company recently conducted some research suggesting that over 6.6 million customers served by the UK’s major broadband companies face hidden fees of up to £ 710 million for wanting to end their contracts early. To back this up, telecom regulator Ofcom has also released data showing that 67 percent of broadband customers currently have their minimum contract and would therefore be subject to hidden fees if they tried to switch to a better deal elsewhere.
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Should customers leave their current plan for a better deal just three months before their minimum contract expires, they would be charged an average fee of £ 78. Ouch!
This can be an expensive problem for anyone who suddenly needs to move or is unsure how long they will be staying in a rental apartment.
Cuckoo isn’t the only company offering contract-free broadband.
Newer broadband companies, including Hyperoptic, Community Fiber, and Giganet, also allow their customers to have ongoing monthly payment, although be aware that you may pay a little more than if you signed up for a longer contract.
For example, Community Fiber offers 1 Gbps speed for £ 49 a month on a 24 month contract, but that jumps to £ 54 if you choose the 30 day contract option. While the bill can be a little higher, it is definitely worth considering a shorter contract if you are renting a property or if you think you will be moving.
Commenting on his contracts, Alexander Fitzgerald, Founder and CEO of Cuckoo said: “Transparency is a quality that is lacking in our broken broadband market. Customers who have put their trust in their broadband providers deserve a fair deal. Instead, they pay extra for their loyalty, which is hit by hidden fees. The broadband market can and must get much better. “
