Broadband companies are among the utility providers increasingly willing to haggle with customers over contract fees.

A recent report which appeared in the Times reveals that customers weighing up offers from different broadband firms or threatening to switch providers at the end of a contract are most likely to be offered improved terms.

One customer claimed he had bagged a £20 a month saving on a TV, phone and broadband bundle when switching from BT to Virgin Media, but that BT had offered to match the offer in order to discourage him from leaving.

"We do have the flexibility to offer anyone a deal who is contracted to us," a BT spokesperson told the newspaper.

Adding: "This is usually on the basis that you stay with us and sign on for another 12 months."

Speaking to Scotland's Daily Record recently, money saving expert Martin Lewis urged broadband subscribers to phone up their providers and threaten to leave, with the intention of securing a better deal.