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Ofcom tightens regulations for UK telcos

Ofcom tightens regulations for UK telcos

Intelligent TechnologyMobileMore NewsTelecomUnited Kingdom

Phone and broadband customers in the UK must be warned when their current contract is ending and what they could save by signing up to a new deal, under Ofcom rules that came into force on February 15.

Around 20 million customers are already out of contract – including 8.8 million broadband customers – and many are paying more than they need to.

Ofcom research reveals that every day, 25,000 broadband customers come to the end of their contract – usually leading to an automatic price rise.

People can earn big savings on their monthly bills if they take advantage of discounts available when signing a new deal. But 16% of broadband customers don’t know if they are in contract, rising to 21% of over-55s.

So, Ofcom is introducing rules to ensure people can see whether they are on the best deal. Phone, broadband and pay-TV companies will have to warn customers between 10 and 40 days before their contract comes to an end.

Lindsey Fussell, Ofcom’s Consumer Group Director, said: “Millions of people are out of contract right now and paying more than they need to. These new rules make it easier to grab a better deal.

“But you don’t need to wait to hear from your provider. Just a few minutes of your time could save you hundreds of pounds today.”

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