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The UK’s telecoms regulator has opened a consultation on how to manage changes to phone tariffs during the lifetime of the initial contract. Ofcom’s proposed approach is to intervene to allow consumers to exit their contract without penalty if their provider introduces any price increase during the term of the contract.
Carriers on their end would be required to be clear and upfront about the potential for price increases and of the consumer’s right to cancel the contract in the event of any price increase. This in turn would address consumer concerns that it is unfair that providers are currently able to raise prices, while they themselves have little choice but to accept the increase or pay a penalty to exit the contract.
But there are also three other possible approaches to address price rises in fixed term contracts.
One option considers whether consumer harm could be addressed solely by tackling the current lack of transparency around the potential for price increases. Second option considers whether consumers should have to actively “opt-in” to any variable price contract. And finally, a complete ban on price rises in fixed contracts has also been considered.
The consultation closes on March 14, 2013 and Ofcom expects to publish a decision in June 2013.
About The Author
Dusan Belic
Dusan has been using smartphones since their introduction and is now following the latest trends in the industry. The "convergence" is what he's most excited about, and writing about it is the next logical thing to do. He thinks that using a smartphone is what everyone who cares about their time should do. In addition to his interests in mobile phones, Dusan also loves to experiment with the latest web and mobile 2.0 services. The idea of accessing and managing your information from any device no matter where you are simply amazes him. Whether it's an online to-do list, note taking service or a video sharing social network, he's there to try it out. He admits though, he's still searching for the ultimate web-based organizational tool, which "sings" perfectly with the mobile PIM application. Dusan used to run SymbianWatch.com which later became part of IntoMobile. He lives in Serbia, South-East Europe, from where he edits the site on a daily basis.
