Ofcom’s New Rules For Telecom Contracts

The independent regulators for telecommunications announced some changes to the guidelines for set in place for companies who change contracts mid-term.

As of the middle of January, Ofcom announced that any consumer could be confident in their acquisition of a telephone or broadband contract when it comes to price changes. The changes made to the guidelines detail that the consumer will be able to exit the contract without suffering a penalty charge if the company increases the monthly charge for the contract.

This is applicable to all respective contracts – landline, broadband or mobile phone – and should act as a way of protecting customers from suffering price increases that, arguably, is unexpected. Many contracts are thought to be a fixed rate for the term of the contract, therefore many people wish to remove themselves from the contract. However the implications of this usually manifests itself financially.

Ofcom’s decision to prevent this from happening in the future is one which should please consumers, and it seems only fair that the consumer does not find themselves in the state of a financial hit regardless of whether they stay in the contract or not. The other benefit of this change also incorporates small businesses.

The new guidelines state that should the provider wish to change the monthly charges from the amount agreed at the contract creation point, the customer must be given one month’s notice. In addition to this they will be allowed to exit the contract without facing a financial penalty – this is the only way they are able to remove themselves from the terms of the contract without penalty, should they wish to leave for any other reason there may well be a financial implication.

The changes also come in light of these changes being made and the consumer being unclear as to what precisely these changes mean. Now, the guidelines will state that the company has to offer comprehensive and transparent information of what will be changed.

In order to ensure that these are not empty threats, Ofcom will be monitoring how the providers put these changes into action as well as the complaints that the companies receive so that they are able to evaluate the effectiveness of the new system. They will also carry out a series of research tasks, including mystery shopping, to assess just how transparent the information is.

There are many different forms of contract in the telecommunications world, EuroDigiTel are just one company who looks to offer the products. This includes mobile SIM cards and premium rate numbers, for more information contact EuroDigiTel directly.