Commenting on the news from Ofcom that as of tomorrow consumers will be able to exit their landline, broadband or mobile contract without penalty if their provider hikes bills, Ernest Doku, telecoms expert at Uswitch.com, says: “This move from Ofcom, which from tomorrow will allow broadband and mobile customers to walk away from higher bills, is extremely welcome. Signing up to a contract, only to be told mid-way through that prices are going up, and there’s nothing you can do about it, is a proverbial kick in the teeth.
“Mobile customers will be breathing the biggest sighs of relief as their contracts tend to be the longest. Hopefully it will make providers think twice about increasing prices – they won’t want to lose customers two months into a 24 month contract. But, even if this move doesn’t stop prices going up, at least it gives consumers some power back.
“Questions still remain over how networks and providers will respond. It’s our hope that they will not increase prices to compensate. There could also be repercussions for mobile customers who got a ‘free’ handset with their deal – will they have to return it or buy it outright if they leave, or will we see the end of free devices?
“And as for those who’ve signed up to mobile, TV and broadband bundle deals, it will depend on how their provider structures their deal. While some will enjoy the same levels of protection, not everyone may be able to leave if just one service becomes more expensive. Also, the protection only applies to contracts taken out from tomorrow, so existing customers still face swallowing any price increases.
“But although the devil may be in the detail, ultimately this move is a real win for consumers who are tired of having to put up with higher bills without a way out. The changes also mean that providers will have to give at least one month’s notice of price changes, as well as improving clarity and transparency about what a consumer is signing up to at the point of sale. The final piece of the puzzle is to ensure that consumers are aware of these changes.”
FOR MORE INFORMATION
Katherine Moss
Phone: 020 3021 5893
Email: katherine.moss@uswitch.com
Twitter: @uswitchPR
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