Customer protection in the mobile and broadband markets
This briefing describes customer protections in the UK mobile and broadband markets. It discusses recent concerns expressed on behalf of telecoms consumers, and looks at reforms aimed at improving fairness and protection.
The government (through the Department for Science, Innovation and Technology) and Ofcom, the independent regulator, aim to encourage a competitive market for telecoms services in which consumers can make informed choices and shop around to get the best deals.
Telecoms markets are regulated by Ofcom under the Communications Act 2003, as amended. Under the Act, one of Ofcom’s primary statutory duties is to further the interests of consumers, including where appropriate by promoting competition. In addition, Ofcom must act in accordance with the government’s Statement of Strategic Priorities (SSP) for telecommunications.
Under the Communications Act 2003, Ofcom sets General Conditions of Entitlement for communications providers. These are the regulatory conditions that all providers of broadband, landline, and mobile services must meet to operate in the UK. They set, for example, the basic requirements for consumer contracts, such as the information that must be provided to customers, and the minimum steps providers must take to support vulnerable consumers.
Over the past few years, Ofcom has added new consumer protections to ensure compliance with the European Electronic Communications Code (EECC). The EECC came into force during the UK’s exit from the EU.
Ofcom also works with the industry to agree voluntary measures to support customers. Measures include codes of practice and the introduction of social tariffs for customers on benefits.
Affordability of telecoms servicesOfcom does not directly regulate the price of retail telecoms services. It takes the view that the market is competitive, and that customers are able to shop around to find deals that suit their needs.
However, the Covid-19 pandemic heightened concerns about the affordability of telecoms services. Ofcom’s regular surveys show that the proportion of households struggling to afford telecoms services has risen since 2021.
High levels of inflation have also contributed to affordability issues. In recent years, many communications providers chose to raise their prices annually in line with the Consumer or Retail Price Index, plus an additional percentage. Bills for some customers rose by over 11% in 2022, and up to 17% in 2023. Stakeholders including Citizens Advice, Hyperoptic (an internet service provider), and price comparison website Uswitch called on Ofcom to tighten these rules. Ofcom announced new rules in July 2024 requiring that telecoms contracts specify annual price increases “in pounds and pence”.
Customers whose initial contract period has ended are moved to a monthly rolling deal if they do not sign up for a new contract. The higher prices paid by these ‘out-of-contract’ customers are a persistent area of concern for regulators. Telecoms providers are now required to notify out-of-contract customers about the best deals available to them.
Social tariffsOfcom considers that discounted tariffs (called social tariffs) have an important role to play to ensure affordable telecoms services for low-income households. There is no mandatory requirement for telecoms providers to offer social tariffs but many providers offer them voluntarily.
Awareness of social tariffs is low. As of February 2023, 5.1% of households on Universal Credit were on a broadband or mobile social tariff. Ofcom and the government have “strongly encouraged” all providers to offer effective social tariffs and to actively promote them to eligible customers.
Industry groups have argued that there are broader reasons for low take-up. They also caution that if take-up rises substantially (by auto-enrolling all eligible customers, for example) the industry would need help with funding.
Helping customers get better dealsResearch by Ofcom, Citizens Advice and the Competition and Markets Authority indicates that some consumers are not engaging in the market and are paying more for, or receiving less from, services than they could.
Ofcom has introduced various policies designed to help customers get better deals, both in terms of prices and identifying which service is most suitable for their needs. It sets various requirements on providers designed to ensure that customers have access to accurate and comparable information and that customers are not prevented or discouraged from switching to another provider.
Customer protections in this area include:
- Rules about how providers market their services, such as broadband speeds.
- A ban on practices that tie customers to a particular provider, such as long-term contracts, automatic contract renewals, and locked handsets.
- Reforms to the process for switching, including allowing customers to change providers by sending a text.
Ofcom publishes specific guidance on how providers should deal with vulnerable customers, who are more likely to display low levels of engagement and may therefore struggle to find the best deal. Providers are required to have procedures in place to ensure vulnerable customers and customers in debt are treated fairly. Ofcom also advises that providers actively try to identify vulnerable customers and make them aware of the targeted support that is available, including social tariffs.
Consumer satisfaction and complaintsMost telecoms customers are happy with their service. According to Ofcom, in 2022 87% of mobile and 82% of broadband customers were satisfied overall.
Ofcom has launched a voluntary scheme whereby customers of participating providers automatically receive compensation for delays to repairs and installations.
For customers who cannot satisfactorily resolve disputes through their provider’s internal procedures, Ofcom has accredited two alternative dispute resolution schemes to provide independent adjudication. All providers are required to be members of one of the schemes.
Customers can also report complaints to Ofcom. Ofcom does not investigate individual cases but collects data to monitor consumer issues, as does the Communications Consumer Panel.
Sources of support and adviceOfcom publishes a wide range of advice articles on its website, including:
Advice is also available from consumer groups. Citizens Advice, through its Phone, internet or TV issues website, has advice on topics such as how to switch to another provider or dispute bills. Consumer charity Which? similarly has articles aimed at helping consumers in choosing and switching Broadband, mobile & TV services.