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Wednesday, December 13, 2023

Ofcom says mobile contracts should ditch inflation-related price rises

UK telecoms regulator Ofcom wants to ban inflation-related rises in telecoms contracts. Instead, it says any potential mid-contract price rises should be set out in pounds and pence.

Many phone, broadband and pay TV companies currently increase their customers’ tariffs in line with a percentage formula linked to inflation. For example, a company might tell customers it will increase their monthly bill every April by the Retail Price Index.

However, as the rate of inflation and the RPI will vary from year to year, Ofcom says customers are required to commit to a contract without being certain about the prices they will pay.

As a result, Ofcom wants potential price rises during a contract to be defined in terms of specific amounts rather than percentages.

Its proposed new rule would require any prices and price rises in a customer’s contract to be set out in pounds and pence, prominently and transparently, at the point of sale. This would prevent providers from including inflation-linked or percentage-based price rise terms in new contracts.

Ofcom’s consultation is open until 13th February 2024, with a final decision expected in spring 2024.
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Opinion Articles

We interview Geoff Love of Esendex about business SMS messaging

Mark Bridge writes:

Nottingham-based Esendex Limited has been supporting businesses with messaging services for over ten years. Yet with SMS messaging celebrating its 20th birthday in the UK this year, it would be easy to think the no-nonsense short message is now being threatened by social networking, mobile email and picture messages.

That’s not the case, explained Geoff Love, Chief Commercial Officer of Esendex.

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I loved the Nokia Communicator. It was a real game-changer, a device that paved the way for today’s smartphones.

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With only 80 days to go until the start of the Olympics 2012, most businesses will have already outlined their marketing strategies to reach out to the new audiences it will attract to the UK. Leading mobile company Textlocal explains how limited time isn’t an issue where mobile messaging is concerned.

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London NFC advertising disappoints

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