Small players trump big broadband rivals

LONDON, Mar 10 (Reuters) Small players in the broadband market are trumping their larger rivals in the customer satisfaction stakes, a study shows.

The four overall best providers are Be Broadband, Eclipse, Namesco and Madasafish, with each receiving scores of nine out of 10, according to an independent study that gauges users' views on customer service, technical support, speed, billing and reliability.

In contrast, household names, such as Sky and Talk Talk, scored the worst. They received just four out of 10, research by price comparison service moneysupermarket.com reveals.

Head of broadband Jason Lloyd said the findings were unsurprising, with droves of customers deserting the main players who have been unable to cope with huge demand for their free broadband packages.

''Smaller companies place far greater emphasis on customer retention,'' he said.

''Because of this, their customers often enjoy the highest service levels within the industry.

''The 'big players', whose marketing has been so successful they have not been able to keep up with the sheer volume of applicants, are under real pressure to sign up new customers, but people leave before actually getting connected as they are fed up with connection waiting periods running into weeks or months.

''They simply cannot keep every customer happy -- particularly in a market as demanding as broadband.'' Almost a third of broadband users have changed provider due to poor service, according to a moneysupermarket poll of 4,555 people.

However, Lloyd expected service levels to improve, as new rules make it easier for people to switch deal and providers lose business due to customer review tools, such as its new ''customer review index''.

Ofcom, the independent regulator and competition authority for the communications industry, said last month that broadband suppliers must give customers a migration authorisation code (MAC) -- a unique alphanumeric reference that allows phone line-based broadband users to switch provider smoothly -- upon request and free-of-charge.

Without a MAC, consumers can be left without broadband for some time while the transfer is taking place.

Previously, providers could also charge for the code, which added an extra stumbling block to the switching process.

''Providers are starting to see the power of customer review tools like our own and realise they cannot afford to be rated badly by people on a comparison site,'' said Lloyd.

''Bad news spreads and no one can afford to be complacent in a dynamic market.

''Last month, mandatory MAC codes were introduced, making it easier for people to leave their broadband provider.

''As a result I'm sure we will see an increase in the levels of service offered across the board by providers as they battle to keep customers.'' REUTERS PV SSC1241