A new study published by O2 suggests that millions of broadband users in the UK are wasting money by buying broadband services based on speeds instead of needs.
The study of over 2,000 consumers found that while the average UK consumer pays for a package of up to 20Mbps per month, the majority of people only require an 8Mbps package for the services they use. This means that UK broadband users could be wasting over £700 million every year on speeds they simply do not need. (nb or over £58 million per month or £2.1 million per day).
When asked for their top three most frequent uses of broadband, people's online activities largely require low bandwidth. For example: 77% people responded that they use broadband for emailing; 74% for general webpage browsing; 51% for paying bills and banking; and 35% for Social Networking.
On the other hand, services that require high bandwidth and more expensive packages are used much less frequently: Only 18% of people use broadband for streaming multi-media content (e.g. watching BBC iPlayer, listening to online radio); 5% download music; and 3% download films.
Felix Geyr, Head of O2 Home and Broadband, says: "62% of broadband consumers in our survey would prefer their ISP to provide packages based around their specific needs. Therefore, our industry needs to tailor its services to people's needs, help consumers understand exactly what they should be buying and avoid marketing based solely on speed.
"It would be much more transparent if we took the same ‘a la carte' approach offered to customers buying digital TV packages, where people can opt in to obtain more expensive services like film and sport."
Sebastien Lahtinen, co-founder of thinkbroadband.com, commented: "This research highlights the need for the industry as a whole to re-think they way it sells broadband. Consumers need to be educated about what kind of service they need to cover their daily usage and the industry needs to help them to make informed choices. Whilst some users will want the fastest possible package, others may find they can save money by picking a package that is more suitable to their specific needs."
'There's no getting away from the fact that for more and more business users their mobile device has become the comms tool of choice.'
Alan Reeve, Managing Director, Aastra UK and Ireland
Having hidden its light under a bushel and keeping its modus operandi a close industry secret, Exponential-e finally spills the beans on its scope of operation and scale of channel opportunity as a carrier with distinction.