ISPs forced to offer end- of-contract notice and better deals
TELECOMS REGULATOR OFCOM has finally outlined rules that will force broadband and mobile service providers to inform customers about the best available deals when their contract runs out.
The move looks to close a loophole where consumers that stayed loyal to ISPs ended up paying more at the end of their contract.
Under Ofcom’s plans, telecoms operators would be obliged to contact customers between ten and 40 days before their contract ended with information, including the finish date, how much the customer is currently paying, how much they will be charged after the contract rolls over and details of any notice period. Providers will also be expected to show the best current deals available, including what prices are available to new customers. The rules come into effect on 15 February next year, but critics argue that the process has already dragged on too long. “Time is of the essence,” said Richard Neudegg, head of regulation at broadband market observer uSwitch. “Every day spent waiting for these notifications to be rolled out, another £3.5 million is overspent on these services – meaning that more than £350 million has already been wasted since the consultation closed in February.”
Internet service providers said that they would comply with the new requirements, once they came into effect. “We agree with Ofcom that it’s important for customers to be aware when their contract ends and to understand their options, whether they are at the end of their contract or have been out of contract for some time,” said BT, which had previously simply rolled customers onto more expensive tariffs.