UK firms dissatisfied with ISPs

UK firms dissatisfied with ISPs

Cost cited as the main reason to switch supplier

One in 10 business broadband subscribers has changed ISP in the past six months, and more are likely to do so in the next six months.

The latest survey from Point Topic found that the percentage of businesses which change ISP has remained fairly static.

However, 2008 will be a "more interesting" time for ISPs as a growing number of customers are 'fairly' or 'very' likely to change broadband supplier in the next six months.

Top of the list of reasons to switch is cost, according to the report. As broadband charges continue to decline, companies are looking to take advantage of contract cycles to sign up for the more cost-effective deals on offer today.

Almost 40 per cent of potential churners point to high prices as their single most important reason for moving.

Cost is followed by customer service, quoted by 13 per cent of businesses, and quality of service quoted by 19 per cent.

Point Topic said that those firms most likely to change supplier are currently using leased lines, frame relay, satellite and even fibre which have traditionally been at the higher end of the broadband scale in terms of cost.

The analyst firm believes that cost/benefit analysis models are finally starting to indicate that upgrading older legacy systems is now a "fiscal plus" , and that business users of these broadband technologies are by far the most likely to churn.

AOL, Be and Carphone Warehouse (including OneTel and TalkTalk) have the most restless customer base, according to the survey.

At the other end of the scale, Orange deserves particular mention for the largest percentage reduction in users likely to churn since the previous Point Topic survey.