A report by the Dutch Authority for Consumers and Markets (ACM) has revealed that many residents overpay for their internet subscriptions in the Netherlands. 79 percent of customers could save up to 250 euros a year by switching internet providers, or signing a new contract with their current providers.
The majority of Dutch residents with fixed and mobile internet subscriptions have contracts which have been automatically extended after expiring. Customers with these so-called dormant contracts often pay more than those who regularly switch or renew their subscriptions, especially as providers often offer discounts as part of new subscriptions.
A prime example of this is shown in the data gathered by ACM where households with internet subscriptions in the budget segment have lower internet speeds and often pay more compared to those with higher speeds. For speeds of up to 100 Mbps, the average monthly cost is 44 euros, while someone with internet speeds between 250 and 750 Mbps pays an average of 41 euros per month.
While Dutch internet is known for being slow and pricey compared to neighbouring countries, according to Manon Leijten, a board member of ACM, switching or renewing contracts can save internet users a substantial amount of money. "Especially at low speeds, it can save you up to 250 euros per year to renew your contract,” Leijten told NOS. “Those are considerable amounts."
While customers can save a lot by switching contracts, it is not always as easy as it sounds. "We receive reports that people are sometimes without internet for days after switching,” stated Leijten. “Providers are also required to inform consumers when their contract expires. We have signals that this is not done, or not done properly. We will keep a close eye on this."
There are various reasons that residents do not change their subscriptions: some do not know their contract has expired or do not know the advantages of renewing it, while others find it too much of a hassle or are happy with their current contract. The Dutch organisation wants internet providers to be more upfront with customers about which rates are the most advantageous, so that users can see how much they can save with different subscriptions and therefore make an informed decision.