Ignorance causes higher Web bills

UK companies are paying up to 28 times over the odds for ISP services because they cannot be bothered to shop around, according to a BT-sponsored report on business and the internet.

The Durlacher Quarterly Internet Report has revealed a widespread range of charges among ISPs, with prices for simple dialup access ranging from #7 up to #200 a month.

'Some companies are basically taking advantage of consumer ignorance and charging the earth. Registering a domain name is a good example. We have discovered ISPs making up to 500 per cent profit on a simple service which should cost an ISP no more than #50 to #80 to carry out on behalf of a client,' stated the report.

The survey of over 300 IT and internet decision makers showed that although 87 per cent of the UK companies questioned said they were satisfied with their ISP, 43 per cent admitted they had failed to do any research into competitors' prices and instead based decisions on reputation and hearsay.

Nick Gibson, an internet analyst at Durlacher, said: 'For most companies it is not a business decision. A lot of the time the responsibility for choosing an ISP goes to a middle manager with no IT knowledge who wants to get the decision out the way with little fuss and hassle.'

UK firms are not only accepting high charges, but also believe they are getting value for money, according to Gibson. 'The survey showed 70 per cent of those customers in the highest cost bracket for modem use - #51 per month and over - expressed satisfaction with their ISP,' he claimed.

'People do not know what to expect in the way of quality and it is hard to establish just what level of service ISPs should be expected to provide,' said Gibson.

The report recommends that ISPs set up service level agreements (SLAs) and offer companies some guarantee of the speed and quality of the service they provide.