Browned off with broadband

The Broadband Customer Satisfaction Report, conducted by price comparison service uSwitch.com, reveals that customer satisfaction with the top broadband providers has plummeted by nine per cent overall from 86 per cent to 77 per cent in the last six months, with free broadband deals and poor customer service blamed.

A lot has been happening in the broadband arena in the past ten months and on the face of it this should fantastic news for customers. Prices have fallen by up to 17.5 per cent and the free broadband deals offered by ISPs look too good to be true.

Unfortunately, it is. TalkTalk and Orange, who both offer free broadband, score miserably on satisfaction levels, with one in three customers unhappy with the service provided.

Matthew Henton, a council member of ISPA (Internet Services Providers Association) and head of marketing at Brightview Group, says the fight for market share using offers such as free broadband will continue to impact on customer service.

“Ordinary customers have been suffering while providers go out and grab land. They figure there is 12-18 months serious growth in the broadband market and want people on board as quickly as possible. After that they will start focusing on customer service as it becomes a switchers market.”

And as Henton points out, the broadband may be free but to get it you have to sign up to another service, and with both TalkTalk and Orange there is an 18 month contract tie-in.

TalkTalk may have ranked bottom for customer service, technical support, quality of connection and ease of use but it wins the top spot for giving value for money, which remains the most important factor for consumers, so no doubt more will be tempted by its free broadband offer.

The company did not respond to a request for an interview, but Charles Dunstone, CEO of TalkTalk, says in his blog (www.talktalk.co.uk) that the company still has “moments” in the area of customer service.

He also refers to the disruptions to service that can be experienced as engineers install TalkTalk equipment in BT exchanges. “Inevitably, this process is not foolproof,” he says and apologises for underestimating initial demand for free broadband.

However, Henton believes TalkTalk should have known better. “What TalkTalk did was ambitious and was bound to generate a lot of customers, and they should have been better prepared for the pressure on infrastructure and customer services. They say there have been problems with local loop unbundling but [ISP] Bulldog already experienced that in 2005, so it amounts to poor planning.”

So does getting value for money mean sacrificing customer service? In the past 10 months over 1.5 million new customers have signed up to broadband, but many have been met with shoddy service. Steve Weller, head of communications services at uSwitch.com, said: “It’s disappointing to see that the majority of providers are failing to accompany the growth in customer numbers by sufficient growth in customer service operations and the required investment in their technology to ensure that they are looking after customer needs in an acceptable manner.”

Unhappy customers can always vote with their feet, but sometimes they are hobbled by their existing supplier who is reluctant to let them leave. Regulator Ofcom will make switching easier by strengthening its Migration Authorisation Code (MAC) scheme, with new regulations planned for early 2007.

“Competition is a good thing as it gives you more choice and drives new services and lower prices, but if people can’t move providers, then they can’t exercise that choice and the ease of switching providers is a real pressing concern, so we are working on that,” said an Ofcom spokesman.

It is unlikely that many Virgin.net customers are thinking of switching, as according to the uSwitch report, it came top with 85 per cent satisfied with the overall level of service. Jonathan Watson, marketing communications manager for Virgin.net, says it is keeping customers happy with the launch of new services such as its online help tool, which allows agents remote access to customers computers with their consent to solve technical problems.

“Customer service is vitally important to our brand. We aim to deliver a robust product and good speeds - it’s not just about price. 95 per cent of customer calls are answered and issues are often resolved through one call. We research our customer base and offering free services such as remote assistance makes them feel valued and takes the heat out of our call centre,” said Watson.

ISPA’s Henton believes that customers need to stop just seeing pound signs and investigate other criteria. “Checking out the ADSL guide (adslguide.org.uk) is a good starting point as you can compare ISPs on lots of levels, not just price. You do get what you pay for in this world and customers need to do their research.”