News

Ofcom - regulator breaks mirrors, blows smoke away to help consumers choose integrated comms package

by Guy J Kewney | posted on 08 December 2006

Consumers "are more likely to shop around if they have access to quality-assured comparison services," said the UK comms regulator, Ofcom, announcing a price comparison scheme to protect confused buyers from scams, and "ensure that price comparison calculators are accurate, transparent, comprehensive and available to all consumers, including disabled people and those without internet access."

It's an ambitious call, and it depends on "fair calculators" which Ofcom will approve. And it depends on industry subscribing to the calculation scheme, and seeking accreditation for price comparison calculators.

The statement, published today, sets out its approach to

protecting consumers from scams and unfair practices;

providing adequate information to allow consumers to make informed choices;

ensuring switching processes that allow consumers to move between providers quickly and easily; and

making sure that all consumers including vulnerable members of society are able to profit from increased competition.

The full statement of the new consumer policy points out the confusion caused by "bundling" of services.

"The communications sector is at the forefront of technological change. Consumers are benefiting from innovative services, faster connection speeds and the ability to buy bundles of communications services more cost-effectively than ever before from a single provider. However, with technological change comes complexity; and with complexity comes the increased potential for scams and other forms of abuse which can develop rapidly and cause a great deal of consumer harm. This complexity can also make comparing services and switching provider more challenging."

The new deal appears to be a response to a rising level of complaints and adverse Press comment on premium price services, with horror stories about kids running up bills of six hundred pounds in a weekend, without realising they were using high-price services.

But it goes a lot further: "We are exploring the feasibility of providing data for broadband and 3G quality of service," says today's announcement, adding: "While the majority of consumers who have switched communications provider tell us their experience was on balance a good one, substantial problems are emerging in some areas. This is particularly true for a significant number of consumers wanting to switch broadband provider. In response, we are currently consulting on proposals to make it easier for customers to move from one broadband company to another."