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| Version 1 | Version 2 |
|---|---|
| Telecoms users can now switch without penalty, orders Ofcom | Telecoms users can now switch without penalty, orders Ofcom |
| (about 7 hours later) | |
| Consumers no longer have to stick with telecoms providers who raise their prices unexpectedly. | Consumers no longer have to stick with telecoms providers who raise their prices unexpectedly. |
| Operators often promise a fixed price when selling a contract, but subsequently increase their charges. | Operators often promise a fixed price when selling a contract, but subsequently increase their charges. |
| Under new rules drawn up by telecoms regulator Ofcom for mobile phone, landline or broadband contracts, providers now have to give customers 30 days' notice of such changes. | Under new rules drawn up by telecoms regulator Ofcom for mobile phone, landline or broadband contracts, providers now have to give customers 30 days' notice of such changes. |
| If customers then decide to switch, they cannot be charged a penalty. | If customers then decide to switch, they cannot be charged a penalty. |
| The plans were proposed by Ofcom last October, but take effect from 23 January. | |
| Pay TV will be included where it is part of a package, but not where it is sold on its own. | |
| "We have reached an important milestone in our work to ensure consumers and small businesses have better protection against unexpected price increases," said Claudio Pollack, Ofcom's consumer group director. | "We have reached an important milestone in our work to ensure consumers and small businesses have better protection against unexpected price increases," said Claudio Pollack, Ofcom's consumer group director. |
| Ofcom found that 10 companies, including Vodafone, BT, Sky and Virgin Media, had put up prices, having originally promised a fixed-price deal when customers took out the contract. | Ofcom found that 10 companies, including Vodafone, BT, Sky and Virgin Media, had put up prices, having originally promised a fixed-price deal when customers took out the contract. |
| It looked at more than 1,000 complaints about the practice. | It looked at more than 1,000 complaints about the practice. |
| Telecoms operators said that they have to put up prices when their own costs go up. | |
| Vodafone, for example, said it had to pay more for services like directory enquiries. | |
| But along with other firms, it has agreed to the changes. | |
| 'Sneaky tactics' | 'Sneaky tactics' |
| The new rules mean that providers are still free to raise prices, but they have to give a month's notice if they do so. | The new rules mean that providers are still free to raise prices, but they have to give a month's notice if they do so. |
| Customers who decide to switch provider as a result will not have to pay an exit fee. | Customers who decide to switch provider as a result will not have to pay an exit fee. |
| The same applies if the provider reduces the number of minutes, or the amount of data provided, rather than actually increasing the charges. | The same applies if the provider reduces the number of minutes, or the amount of data provided, rather than actually increasing the charges. |
| "This should avoid any sneaky tactics being used," said Dominic Baliszewski of the comparison site Broadbandchoices. | "This should avoid any sneaky tactics being used," said Dominic Baliszewski of the comparison site Broadbandchoices. |
| But he warns that customers only have 30 days to switch, after they receive notice of the increase. | But he warns that customers only have 30 days to switch, after they receive notice of the increase. |
| "We are concerned that some customers may miss their opportunity to switch if they miss the notification, for example, if they are away for a few weeks on holiday," he said. | "We are concerned that some customers may miss their opportunity to switch if they miss the notification, for example, if they are away for a few weeks on holiday," he said. |
| Ofcom has also produced a checklist to advise customers what to look for when they are taking out a new telecoms contract. | |
| Telecoms firms will, however, still be able to stipulate in their contracts that prices may rise, even though the contract is for a fixed period. |