6 June 2007
Tiscali has become the latest broadband provider to charge consumers different amounts depending on where they live.
Currently, the vast majority of broadband providers have been found to charge more money for consumers residing outside local loop unbundled (LLU-ed) areas.
Only two providers refuse to increase their tariffs for these customers - Orange and Pipex - which have now been nicknamed 'rural heroes' as a result.
According to research from the price comparison and switching website uSwitch.com, customers of Sky, TalkTalk, AOL and now Tiscali are being charged up to 91% more if they live outside the LLU areas, creating a two-tiered pricing system for broadband customers.
Steve Weller, Head of Communication Services at uSwitch.com, said that there was now growing concern about this practice which was leading to some consumers being treated like second-class citizens.
"It's very disheartening to see Tiscali jumping onto the anti-consumer bandwagon of imposing additional charges on customers that fall outside their LLU network," said Mr Weller. "It's simply not acceptable that one customer has to pay more for an identical - or sometimes inferior - service just because their postcode happens to fall outside their provider's LLU hit list."
Mr Weller went on to praise Orange and Pipex for refusing to "succumb" to the controversial pricing system, though he warned that Pipex had already declined to rule out a two-tiered charging scheme in the future.
"We are calling for this new 'postcode lottery' practice to be halted in its tracks before all providers join in, denying more consumers the chance to benefit from the great deals that are currently out there," Mr Weller concluded.
So much choice, but don't panic - it's easy to get yourself a great deal on broadband using uSwitch.com. If you're confused about technicalities, the help pages throughout our calculator are on hand at each step of the sign up process to answer all your questions. Find providers in your area and compare packages using our free and impartial service. Sign up to broadband today.
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