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When you are buying a broadband package, it is important that you look at all the charges included in the package instead of just going by the headline cost that may exclude charges like installation fee or the cost of modem etc. A few broadband providers also include other hidden charges like cancellation fee and the cost of technical support so these and other hidden charges need to be considered while deciding on a best deal.
Work out the first year cost
Most ISPs also waive some of the hidden charges when you sign up for minimum one year or more. They may also offer you free modem or wireless router and free anti-virus protection. It is also possible that you may get free broadband for one or two months. Recently, many ISPs offer deals that have reduced monthly price for the first three or six months of the contract length thus comparing the first year cost of different packages will help you to arrive on the right deal.
Decide on your requirement of broadband hardware
Many ISPs offer broadband hardware like modem or router free of cost depending on the package and the contract. With high cost packages, you will even get free wireless router that usually cost around £50. Choosing from packages that offer free hardware can really save your money. However, check to see if there are any delivery charges or installation charges with such free offers. You can check out these details in the small print before you sign the contract.
Also, there could be some hardware recovery fee that some broadband ISPs may impose on you when you leave their service meaning you can not take the hardware and leave away. For example, Eclipse charges up to £50 when they do not get back modem/router in working condition. Orange broadband provider asks their customer to pay the price of the modem.
Check to see whether you can avoid setup cost
Most ISPs offer free connection but not with all packages. It is also worth considering the monthly cost that may often impact on how much you will pay as connection fee. If your ISP has waived setup cost, also check whether the monthly cost sounds expensive. There is also possibility that you may get cheaper deals that include setup cost. As a rule of thumb, consider both the monthly cost and setup cost before deciding on a cheaper deal.
Find out the cancellation charges
The service contract that you have signed up with your broadband provider will oblige you to stay with your provider for the minimum period and failing that you may incur cancellation fee that varies with different providers.
Many providers will ask you to pay for the remaining months of the minimum contract, if you leave them when the contract is still in effect. BT, Orange, Virgin Media, Tiscali and AOL are in this list.
A few ISPs specify cancellation fee in the terms and conditions. For example, PlusNet and Eclipse charge £40 and £47 as cancellation fee respectively.
It is also worth checking out the cheaper broadband deals as they may include higher cancellation charges.
Cancellation fee is not a big factor to consider, though. However, it is worthwhile to know the cancellation charges before you switch your provider.
Know the technical support call charges
There is also the cost of making calls to technical helpdesk if something goes wrong with your connection. Only a few providers offer free customer service and technical help line using 0800 numbers. Free customer service is often ridden with the problem of long waiting time and poor service.
There are also other numbers, like 0845 numbers which are charged at local rate and 0870 numbers at national rate. Providers also offer numbers at premium rate. The service could be prompt and excellent but is expensive.
Providers also offer free online help and you can seek advice from using these facilities
There are some additional costs but you can avoid or minimise them by taking certain precautions:
You may be charged when you move house
Many providers charge house moving fee when you move your connection to another location. As you will be moved to different BT line or exchange, your ISP needs to recover some of the cost while doing so.
The fee for moving house also varies with different providers. For example, when you move within Madasafish broadband, but to another location, you will be charged £80.62. BT charges £34.86 when you move house. However, Eclipse offers free house moving when you sign up for a new 12 month contract.
Downgrade fee
Some providers BT and Be charge downgrade fee when you move or downgrade to a cheaper deal while you are still under the minimum contract. This may vary depending on your current service and the package you want to move to. There could be up to downgrade fee of £50. However, you can downgrade to low cost package without incurring these charges once the existing contract is over.
What are cease charges?
Cease charges will apply only when you cancel your service with your provider. You will not incur it, when you switch provider. To avoid cease charges, when you move house, do not cancel the service but ask your provider to move your connection to your new house.
PlusNet and BT charge £40. Cease charges could vary with different broadband providers.
Other hidden charges
- If your service has been disconnected for the reasons of non-remittance of fee to your provider or BT, you could be charged reconnection fee for the resumption of service.
- When you call an engineer to make a visit, providers can charge up to £160. Before calling an engineer, make sure that you really need professional help after a personal inspection of your connection.
- With free hardware like modem or wireless router, there could be delivery charges. For example, Eclipse and Pipex charge £4.99 and £7.50 as delivery fee.
- When you make payments to your providers by credit card, you may be charged for it. For example, BT adds £1.50 to the monthly cost when you use credit card. Orange and Pipex charge £1 with the monthly cost.
- If your bill is not paid at the scheduled time, some providers may charge you certain sum which is worked out at an interest of 2-4 % of the balance you have to pay.
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