I think 24 month contracts are generally not user friendly
Now there's an understatement!
Of course, the providers have to recoup their one-time setup costs (Openreach activation charge; supplying you with a router; paying their salespeople commission). In theory, a longer contract means a lower monthly price as these costs are amortized over a longer period.
However, if that were the *real* reason for the long contracts, then the price would drop at the end, whereas in practice for most providers it jumps up hugely: they want to force you to sign a new contract. Of course for a continuing customer they have no activation charge to cover, and often don't send out a new router, so it's all cream. Plus, you can't take advantage of a competitor's offer while you're locked in.
There was a similar issue with mobile phone contracts, where the cost of the handset is recovered during the contract period, but mobile providers were not dropping the monthly fee at the end of the term.
Eventually OFCOM forced the providers to drop rates automatically once the handset is paid off. People were always free to change provider at the end of their contract, but OFCOM decided that market forces weren't working properly here, and customers were being exploited. I think a very similar case can be made for broadband.



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