Is your business stuck paying too much for broadband?

In his book Free: The Future of a Radical Price, Wired Editor-in-Chief Chris Anderson tells a story about email storage space in the magazine’s offices.

He was puzzled that every few months the IT department would ask everyone to clear out their inboxes to free up space. He looked into it and found that somehow the business had got ‘stuck’ paying too much for storage.

“Somehow we got stuck thinking that storage was expensive, when in fact it was dirt cheap,” he says.

“We treated the abundant thing – hard drive capacity – as if it were scarce and the scarce thing – people’s time – as if it was abundant. We got the equation backward.”

Many businesses in the UK do the same – not with storage, as far as I know, but with broadband.

Offices struggle on with slow broadband – figuring, that’s life – but many could do better

Adding insult to injury is the fact that many are still on legacy packages far more expensive and with lower speed caps than current deals or stick with the default provider.

That default provider is, most often, BT and, given the provider’s recent price hike, maybe it shouldn’t be.

Before you’ve even picked up the phone BT are now charging £166.80 a year for a phone line.

Three years ago that was £132 a year.

Businesses need Chris Andersons to ask the questions necessary to reset their broken broadband equations.

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Julia Kukiewicz is editor of consumer information site Choose. The site offers market research and debate into the home media and mobile and personal finance industries, as well as covering rights issues for consumers. Follow Choose for more on twitter at @choosenet.