New OFCOM rules have come into effect, which should help millions of customers to make big savings on their mobile, broadband and TV subscriptions.
Key Points:
- Around 20 million customers are still paying for phones and satellite boxes that they already own
- The regulator OFCOM has stepped in
- New rules will mean companies must inform their customers when they are out of contract
From the 15th of February, new OFCOM rules came into effect which should help millions of customers to make big savings on their mobile, broadband and TV subscriptions.
How?
When you take out a monthly phone contract you are paying towards the cost of the handset each month as well as the minutes and data allowance.
After a certain amount of time (usually 12-24 months) the cost of the phone handset will have been covered and you can upgrade to a new handset for free or switch to a SIM-only plan where you pay only for the data and minutes allowance.
If you forget to upgrade your phone, or don’t realise that you are able to, you could be wasting a large amount of money each month paying for a phone you already own. Perhaps you are paying £45 a month, whereas a SIM-only plan would give you the same data and minutes for only £15.
As you’ve probably already guessed, it’s in a company’s interest for you to be paying them the same large fee after they’ve already covered the cost of the handset as it means an extra chunk of profit for them each month.
OFCOM (The Office of Communications), the government-approved telecoms and broadcasting regulator, has stepped in on behalf of customers to force companies to be more upfront about their pricing and the length and terms of their contracts.
This is part of a series of regulations meant to protect consumers’ interests and introduce more competition into the market. Recent proposals have included a plan to ban the selling of “locked” mobile phones to make it easier for consumers to switch networks.
So, what’s changed?
Phone companies, broadband providers and pay-TV companies (like Sky TV) now have to inform their customers when they are between 10 and 40 days from the end of their contract.
The alerts can be sent by text, email or letter and must refer the customer to the company’s best current deals.
Anyone who is already out of contract must be reminded at least once a year and informed of alternative deals.
I might be out of contract. How do I know if I’m overpaying?
Along with the new rule changes, OFCOM has launched a guide to help you find out how much you are paying and some tips on how to find better deals.
At Carden Telecoms, we’re committed to always giving our clients the best technology at the best prices. If you’re looking for business mobile phones or other enterprise telecoms solutions like hosted VoIP or leased lines, speak to a member of Carden Telecoms’ team today.
