Customers may get right to ditch phone contracts in ‘not spots’

HOMEOWNERS who move into mobile phone “not spots” will be able to change their providers without extra charges under plans being considered by ministers.

The Government yesterday suffered defeat in the Lords as peers backed plans to treble minimum broadband speeds and improve mobile phone coverage.

Ministers are now considering taking up one of the amendments that will enable people to switch providers without paying a penalty.

The move will give people who suffer from poor mobile reception after moving home to a two-week grace period during which they can change.

Peers also succeeded in defeating the Government over minimum broadband speeds, which they said must rise significantly or they will become “unfit for purpose”.

However, the Government is likely to use its majority in the Commons to block the plans, warning they may not comply with EU law.

Speaking at the Bill’s report stage, Lord Fox, a Liberal Democrat, said: “We are some distance from world class, and the objective of this amendment is to help move us along that road.”

Lord Mitchell, a non-affiliated peer, added: “I felt so terribly frustrated by the lack of ambition in the Government’s proposals. Gigabytes should be king.”

For the Government, Lord Ashton said it shared the ambition for wide- spread availability of fibre optic connections. But he said he struggled to see how the targets “could possibly be compliant with EU law”.

Later, the Government suffered a further defeat when peers backed a move that would allow customers to cap their monthly mobile bills.

The amendment, which was voted through by 244 votes to 198, a majority of 46, would also allow users to switch mobile provider at no additional cost where a service is sub-standard and also to roam within the UK at no extra charge in provider “not spots”. Propos- ing the move, Liberal Democrat Lord Clement-Jones said: “Mobile phone billing is one of the most complicated areas of domestic expenditure. There may be in particular some danger of vulnerable customers getting into difficulty.”

He pointed out that limits were imposed on credit cards, but not for mobile phone contracts.

Responding for the Government, Baroness Buscombe said a number of operators already provided bill caps, while others had measures in place to tackle “bill shock”.

She said there was a need to ensure that proposed changes did “not risk putting people in vulnerable situations”.

‘I felt so terribly frustrated by the lack of ambition in the Government’s proposals. Gigabytes should be king’