Broadband consumers should be freer to shop around, says regulator

Phone and broadband consumers were promised help to shop around with confidence on Friday, as the communications regulator Ofcom annnounced a new initiative to help people identify and secure the best deal for their needs and budgets - be it through agreeing a new deal with their current provider, or finding an alternative one with a different provider.

The authority outlined three potential reasons why people failed to shop around - the ease of leaving its current service provider, confusion about when to engage at the end of a fixed term contract, and uncertainty about different services and needs.

As a result, it said it was investigating whether existing contract terms and lengths, as well as the practice of locking handsets to a single network operator, deterred people from switching.

It was also considering whether consumer engagement could be improved if providers were prompt in informing customers about the end of a contract term, and was examining whether pricing information could be presented on a more comparable basis.

“We want to help telecoms and TV customers take full advantage of the products and deals out there,” said Ofcom consumer group director Lindsey Fussell.

“Too many people are deterred from shopping around, often staying on contracts that don’t suit their needs.

“So we plan to make things easier, by breaking down the barriers that prevent customers from engaging in the communications market.”

Over the next two months, Ofcom said it would seek views from the public, consumer groups and companies on the current barriers to customers participating in the market.

Once it has considered those results and wider feedback, it said it expected to announce any next steps for increasing engagement in the sring of next year.