More people switching broadband due to credit crunch

The global credit crunch has led to an increase in the number of people switching many different services and products to get a better deal, and this includes broadband.

Since the onset of the global credit crunch last summer consumers have switched a number of services and products in order to get a better deal and save money, and this includes everything from their credit card and their mortgage to their utility providers and insurance providers. According to a recent report this is also true of broadband services, with a number of consumers switching broadband service providers to try and combat the effects of the credit crunch.

Officials have stated that a rising number of consumers have been switching broadband service providers, often to find a better and more affordable package than their existing one. The survey was carried out by AOL Broadband, and showed that nearly sixty percent of consumers have switched services such as broadband and mobile phone services.

The research also showed that many people are now wary of entering into longer term broadband and phone contracts given the volatile financial conditions that most are facing. Many consumers have said that they feel ‘pinned down’ by longer term contracts, and officials have stated that long term contracts are going to become major casualties of the credit crunch, with consumers opting for the shorter term instead.

One official from AOL Broadband said: “We all know that the long term commitment of a mortgage has become more difficult since the credit crunch took hold, but what this research shows is that we are now far more wary about entering into any long term contracts. The message is that consumers now expect the flexibility to choose whether they sign up to a contract for their services or not. It is clearly an important factor, with 79 per cent of our respondents saying that contracts or the lack of them are a deciding factor when looking at services.”