UK Broadband Users Waste £700 Million On Fast Internet Packages

O2 revealed details of a report it commissioned that shows that users are paying much more than they really need to when it comes to broadband access.

More specifically, O2 says that millions are buying broadband services that do not fit their need and O2's head of home and broadband, Felix Geyr, to say that the industry needs to "tailor its services to people’s needs, help consumers understand exactly what they should be buying and avoid marketing based solely on speed".

This, O2 reckons, means that collectively customers are losing around £1.2 million a day or nearly £750 million a year to pay for faster-than-needed services.

Thinkbroadband.com carried out the research for the Telefonica-owned mobile operator and found out that only five per cent of respondents use broadband to download music and a mere three per cent download movies.

On the other hand, nearly one out of every five broadband user who participated in the survey said that they used their internet access for multi media services like streaming BBC iPlayer.

Ultimately, O2 said, customers are paying for an "up to 20mbps" service but in reality most of them only need an 8mbps package.