The survey of 2,000 adults, by comparison site broadbandchoices.co.uk, found that almost 40 per cent of British households have stuck with their current supplier for four years or more, despite the fact that prices have dropped by more than 50 per cent in recent years.
According to the website, the average annual cost of a broadband and home phone bundle is now £62 - four years ago that average was £132 annually. Across the UK, that means that total money wasted on more expensive packages if £500 million.
The majority of those who were failing to take advantage of better deals said they thought it would be "complicated and difficult".
Regulation introduced by Ofcom back in 2007, means that an existing supplier must supply customers looking to switch with their Migration Authorisation Code (MAC) free of charge and within five working days.
And last year, the telecoms regulator announced that it would be considering other measures aimed at further simplifying the process.
Dominic Baliszewski, telecoms expert at broadbandchoices.co.uk, told the Daily Mail: "A lot of customers are stuck on outdated packages and could get so much more for their money if they just switched.
"People are used to shopping around for energy, insurance or even petrol, but customers are still failing to regularly switch their broadband service, potentially pouring over £500 million down the drain each year."
Have you successfully switched broadband providers? Do you think the process needs further simplification? Leave your comments below...