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Sunday, 12 November 2017

Ofcom to introduce automatic compensation for telecoms service failures

Ofcom to introduce automatic compensation for telecoms service failures

Customers suffering poor landline and broadband services will be automatically compensated under a new scheme to be rolled out in 2019, though at lower rates than previously outlined




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Scott McCulloch
  • 10:21, 10 NOV 2017




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Customers suffering poor landline and broadband services will be automatically compensated under a new scheme to be rolled out by the telecoms regulator Ofcom, though at lower rates than previously outlined.
Ofcom estimates under its proposals, to be rolled out in 2019, up to 2.6 million more landline and broadband customers could receive up to £142 million a year in new compensation payments.
This annual compensation estimate has fallen from £185 million Ofcom estimated in March when it launched its consultation, having now cut the compensation rates it will set across all three service areas identified.
The regulator had earlier proposed it would set compensation if a service isn't fixed within two days at £10 a day; £30 per missed appointment if an engineer fails to turn up for a scheduled appointment or cancels with less than 24 hours notice; and £6 a day for delays in a scheduled start date for services.
Those figures have now been revised downward to £8 a day if a service has been down two full working days; £25 per missed or late rescheduled appointment; and £5 per day for missing a service start date.
The regulator said as a result of its intervention, BT, Sky, TalkTalk, Virgin Media and Zen Internet – who together serve around 90 per cent of landline and broadband customers in the UK – have “agreed to introduce automatic compensation, which will reflect the harm consumers suffer when things go wrong”.
The regulator said it will continue to monitor the scheme, and will step if measures agreed are not fully implemented.
Lindsey Fussell, Ofcom’s consumer group director, said: “Waiting too long for your landline or broadband to be fixed is frustrating enough, without having to fight for compensation.
“So providers will have to pay money back automatically, whenever repairs or installations don’t happen on time, or an engineer doesn’t turn up.
“People will get the money they deserve, while providers will want to work harder to improve their service.”
Alex Neill, managing director of home services at Which?, said: “We are pleased that compensation for poor broadband is going to become automatic, as it is now such an essential part of all of our everyday lives.
“For all consumers to get what they're entitled to, it’s vital that all providers play fair and sign up to this scheme.”
Posted by Simon Dunn at 03:58
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