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Tuesday, November 1, 2016

Vodafone fined £4.6 million by Ofcom

UK communications regulator Ofcom is fining Vodafone £4,625,000 for mis-selling, inaccurate billing and poor complaints handling.

This penalty is the result of two separate Ofcom investigations. One found that around 10,000 ‘pay as you go’ customers didn’t receive their credit after Vodafone upgraded its billing system. Ofcom said this problem was exacerbated because Vodafone didn’t react quickly enough to the issue. The second investigation found flaws in Vodafone’s complaint handling process.

£3,700,000 of the penalty was for taking customers’ money without providing a service and £925,000 for the complaint-handling flaws. The money will be passed on to HM Treasury.

All affected customers have been reimbursed except for 30 who couldn’t be traced. The average refund per customer was £14.35.

Lindsey Fussell, Ofcom’s Consumer Group Director, said “Vodafone’s failings were serious and unacceptable, and these fines send a clear warning to all telecoms companies. Phone services are a vital part of people’s lives, and we expect all customers to be treated fairly and in good faith. We will not hesitate to investigate and fine those who break the rules.”

In a statement, Vodafone said “we deeply regret these system and process failures” and offered “our profound apologies to anyone affected by these errors”. It described the issue as a consequence of errors when moving more than 28.5 million customer accounts to a new IT system.

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Opinion Articles

Ee-ee-ee, says Everything Everywhere

Mark Bridge writes:

Mobile networks have changed, haven’t they?

Once they were all about delivering service. Coverage. Quality. Price. Now it’s much more about branding.

Everything Everywhere has announced it’s to become EE, an obvious abbreviation that’s been used in mobile industry briefings pretty much since the company was created two years ago. It joins the likes of Kentucky Fried Chicken, Hennes & Mauritz, British Home Stores, Independent Television and Marks & Spencer, although all of these took decades to transition into businesses that were just described by their initials.

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Article rating: 4.0

Last week at The Fonecast: 10th September 2012

No Amazon smartphone, no Nokia tablet

Mark Bridge writes:

It’s a smartphone autumn, as prophesied a few weeks ago by the Carphone Warehouse and many others. The frenzy of big-name announcements led by Samsung at Berlin’s IFA has given way to stand-alone media presentations from Nokia, Motorola and Amazon.

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With instant-pay apps, wallets can stay home

Ted Landphair of voanews.com writes:

A lot of people gave up carrying much cash a long time ago, since they knew ‘plastic’ - a credit or debit card, or a store or public transit ‘smart card’ - would be accepted just about everywhere.

But to hear tech companies tell it, plastic cards will be museum pieces as well before long.

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Last week at The Fonecast: 27th August 2012

4G gets a boost in the UK, Samsung gets a slap in the USA

Mark Bridge writes:

It was a week of dramatic contrasts in the mobile phone industry. We started with Everything Everywhere’s news that 4G service was coming to the UK this year – possibly with a new brand that’ll work alongside Orange and T-Mobile. Meanwhile Three UK seems to have its own plans that involve acquiring some excess 4G spectrum from Everything Everywhere. There was much muttering from Vodafone and O2, although whether this’ll manifest itself as legal action remains to be seen.

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The Hare and the Tortoise: the race for 4G/LTE in the UK

Robin Kent writes:

With this week’s announcement that Everything Everywhere has been given the green light to launch the UK’s first 4G service, competing operators such as Vodafone and O2 are getting hot under the collar. With every day that goes by, these operators lose vital competitiveness as the market creeps away them towards Orange and T-Mobile. This is a real life ‘hare and tortoise’ scenario.

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