BROADBAND, TV, mobile and home phone companies will have to tell customers when their contract is coming to an end and show them the best deals available under new rules from Ofcom.
The move could see up to 20million customers benefit by switching provider or agreeing a new deal with their existing one, the telecoms regulator said.
People who bundle their landline and broadband services together pay on average around 20 per cent more when they are out of contract — rising to 26 per cent among customers who bundle in their pay-TV services.
Around one in seven customers do not know whether they are still tied to the original deal, according to Ofcom.
‘We’re making sure customers are treated fairly, by making companies give them the information they need, when they need it,’ Ofcom consumer group director Lindsey Fussell said. ‘This will put power in the hands of millions of people who are paying more than necessary when they are no longer tied to a contract.’
The changes will involve providers sending tailored information to millions of individual customers.
This will have to include the contract end date, the price before this date, any proposed changes and the best deals offered by their provider.
Ofcom said the new rules would not come into force until February 15 next year, giving companies nine months to make the necessary changes to their systems and processes to make sure they ‘get this right’.
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