Compensation for landline and broadband customers when things go wrong 22 March 2017
Providers would have to compensate for slow repairs, missed deadlines and appointments
Up to £185m in extra compensation would be paid out each year
Proposals part of Ofcom's plan for a step-change in telecoms service quality
Ofcom is today proposing to require providers to pay automatic compensation either a cash payment, or a credit on a bill to customers who suffer from these kinds of poor service.
Customers would be entitled to automatic compensation, without having to go through a potentially lengthy and difficult claims process, whenever:
their landline or broadband is not fixed quickly enough after it has stopped working; or
their new landline or broadband service is not up and running on the day promised; or
an engineer doesn't arrive for an appointment as scheduled.
Ofcom estimates that the plans would mean up to 2.6 million additional landline and broadband customers could receive up to £185m in new compensation payments each year.[1]
Lindsey Fussell, Ofcom's Consumer Group Director, said: When a customer's landline or broadband goes wrong, that is frustrating enough without having to fight tooth and nail to get fair compensation from the provider.
So we're proposing new rules to force providers to pay money back to customers automatically, whenever repairs or installations don't happen on time, or when people wait in for an engineer who doesn't turn up. This would mean customers are properly compensated, while providers will want to work harder to improve their service.
Compensation payments would be set by Ofcom, and designed to reflect the degree of harm suffered by consumers. Here is how Ofcom's automatic compensation scheme would work:
Today's proposals apply to fixed broadband and landline telephone services only. Our analysis shows that mobile companies already make significant compensation payments to customers and we estimate that less than 1% of mobile customers lose service for more than 24 hours.[2] However, we will continue to monitor this area.
The situation todayWhile most consumers are generally satisfied with their telecoms services[3], a significant minority still experience problems.
Our analysis suggests that each year:
there are 5.7 million cases of consumers experiencing a loss of their landline or broadband service;
engineers failed to turn up for around 250,000 appointments; and
around one in eight landline and broadband installations were delayed (12%), affecting more than 1.3 million people.
When they occur, these problems can leave customers unable to keep in touch with friends and family, or use the internet, while one in four people (26%) who experienced a missed appointment have taken a wasted day off work to wait at home for an engineer.
Compensation payments are currently given ad-hoc to only a minority of those suffering problems (in up to 15% of cases), and can fail to adequately reflect the harm caused.
Measures for small businessesAround one-third of small and medium-sized enterprises choose residential landline and broadband services and would also benefit from our compensation proposals.
But we propose that all SMEs should benefit from clearer, more detailed information upfront about the service on offer including whether they are entitled to compensation, and how much, when problems occur.
SMEs can negotiate bespoke terms and there are standard landline and broadband business contracts that provide service guarantees and compensation for a number of different problems, including loss of service. But our research found that around half of SMEs (49%) were uncertain of their rights when providers fell short.
Our proposals for greater transparency should help SMEs to compare the service quality and compensation arrangements for different contracts, and choose the one that best meets the needs of their business.
Next stepsA consultation on today's proposals is open until 5 June 2017 at 5pm, and we will publish our decision statement around the end of the year.
In response to Ofcom's plans, BT, Sky and Virgin Media have jointly put forward a draft proposal to introduce automatic compensation through a draft voluntary industry code of practice. At this stage, we do not consider that this proposal sufficiently meets our concerns, when quality of service falls short.
ENDS
NOTES TO EDITORS
Currently, there are 7.2m instances where landline or broadband customers suffer delayed repairs, missed appointments or delays to new installations. Financial compensation, totalling around £16.3m, is currently paid out in 1.1m of these cases.
Our analysis of the number of consumers that experience loss of mobile service entails making several assumptions and provides a broad sense of the order of magnitude of loss of service. Further detail is set out in Annex 9 to the consultation.
Around nine in ten of residential landline telephone users (88%) and fixed broadband users (87%) were either very' or fairly' satisfied with their service in 2016.[1] Eight in ten SMEs (83%) are satisfied with their landline and 69% of SMEs are satisfied with fixed line broadband.[2]
1 Source: Ofcom Communications Market Report 2016, August 2016, Figures 4.38 and 4.40: https://www.ofcom.org.uk/__data/assets/pdf_file/0024/26826/cmr_uk_2016.pdf
2 Source: SME experience of communications services, January 2017, p. 33: https://www.ofcom.org.uk/__data/assets/pdf_file/0030/96348/Ofcom-SME-consumer-experience-research-2016-Report.pdf
Most recent headlines
04/08/2024
Dalet, a leading technology and service provider for media-rich organizations, is excited to announce Santiago Solanas as its new Chief Executive Officer (CEO)....
03/06/2024
Dalet, a leading technology and service provider for media-rich organizations, a...
05/05/2024
A special evening performance by multiplatinum singer Becky G will provide a memorable conclusion to TeievisaUnivision's Casa Cultura upfront event on May 1...
05/05/2024
Giant media buyer Publicis is telling network sales executives that it does not think Nielsen's new panel-plus-big-data currency is ready for this upfront....
05/05/2024
WASHINGTON Glenn Kirschner, legal analyst at NBC News, blasted the media for referring to the New York trial of former President Donald Trump as a hush-money ...
05/05/2024
Catchy Comedy's weekend marathon sees The Beverly Hillbillies on the weekend of May 4-5. The event kicks off Saturday, May 4 at 11 a.m. ET, and runs through...
05/05/2024
NBC Sports has the 150th Kentucky Derby Saturday, May 4. The coverage begins at 2:30 p.m. ET on NBC and Peacock and the feature race at Churchill Downs in Louis...
04/05/2024
NEW YORK As the Asian Pacific American Heritage Month kicks off in May, Nielsen has released an extensive new report diving into their media habits with data sh...
04/05/2024
PHILADELPHIA As National Military Appreciation Month gets underway, Comcast has announced several new initiatives to help veterans, service members, and their f...
04/05/2024
WASHINGTON, D.C. Federal Communications Commission chairwoman Jessica Rosenworcel has announced a tentative agenda for the May Open Commission Meeting scheduled...
04/05/2024
The Broadband Forum has announced major enhancements to key 5G convergence standards that the group said will help advance next-generation applications, improve...
04/05/2024
Spotify Wrapped Campaign Spot Graded With DaVinci Resolve Studio
Brie Clayton May 3, 2024
0 Comments
Blackmagic Design today announced that Colorist M...
04/05/2024
Three Boston Conservatory at Berklee Alums Nominated for Tony Awards An additional eight alums and two current students performed in nominated productions.
...
03/05/2024
An innovative learning tool to help media and civil society better understand ho...
03/05/2024
PARK CITY, UTAH - JANUARY 21: (L-R) Actors K stutis Cic nas and Greta Grinevi i t , Director Marija Kavtaradze and Producer Marija Razgute attend the 2023 Sunda...
03/05/2024
If you aren't familiar with Danny Ocean's music, it's only a matter ...
03/05/2024
Spotify has an unwavering commitment to supporting emerging artists across all genres, to helping them launch and thrive in their careers, and to connecting the...
03/05/2024
Como uno de los sonidos de mayor expansi n en el mundo, la M sica Mexicana va m ...
03/05/2024
As one of the fastest-growing sounds worldwide, M sica Mexicana is more than jus...
03/05/2024
NEW YORK FuboTV reported that it lost 110,000 subs in Q1 2024 but it exceeded its guidance for the quarter with double digit year-over-year increases across key...
03/05/2024
Only 3 Weeks Left To Enter The Creative Industries Most Award
Brie Clayton May 3, 2024
0 Comments
Creativepool is giving a last call to the creative i...
03/05/2024
WePlay Studios Transforms the Future of Live Event Storytelling with AJA Gear
Brie Clayton May 3, 2024
0 Comments
By 2032, the esports market is expec...
03/05/2024
WASHINGTON Shannon Bream, Fox News Sunday anchor and chief legal correspondent, sat for a keynote chat at The Business of TV News, with Tom Umstead, senior co...
03/05/2024
WASHINGTON Asked how important is local news, Martha Raddatz, who has covered foreign conflicts for decades and moderated presidential debates for ABC News, s...
03/05/2024
Sony Pictures and Apollo Global Management have made a $26 billion cash offer fo...
03/05/2024
CBS announced its 2024-2025 primetime schedule, which features the new dramas NCIS: Origins, Matlock and Watson, and new comedies Poppa's House and Georgie ...
03/05/2024
Sports-focused streaming service Fubo said it reduced its red ink in the first quarter, despite losing 110,000 subscribers since the end of the year....
03/05/2024
Walmart is reportedly about to release a new 4K streaming box/smart speaker hybrid device for Google TV that could retail for as low as $50, according to a repo...
03/05/2024
Enhancements to its Delivery Workspace solution provide increased content delivery robustness and security
By Matthew Corrigan
Published: May 3, 2024
Enha...
03/05/2024
According to reports, if the bid is successful, Sony would be the significant majority shareholder of the new private company
By Jenny Priestley
Published: M...
03/05/2024
Located in Manchesters Spinningfields district, the course aims to equip students with the skills, knowledge and industry insight for a career in the creative s...
03/05/2024
Lightbridge has created a new Cine Reflect Lighting System kit, dedicated to enabling artistic lighting with consideration of today's productivity practical...
03/05/2024
Broadcast media systems integrator BeckTV and Lawo worked together on a large-scale AES67 build of radio control rooms at KPBS, San Diego's NPR and PBS memb...
03/05/2024
Raleigh, NC, April 12, 2024 SmallHD announces PageOS 6, a powerful software update free for owners of SmallHD monitors, featuring increased functionality, exp...
03/05/2024
SmallHD announces the Quantum 32 a new 31.5 OLED monitor designed to provide reference HDR/SDR images for post-production final color grading, as well as cri...
03/05/2024
By 2032, the esports market is expected to grow to $9.29 billion, bolstered by a global player count and fan following that both continue to climb. The 2023 Lea...
03/05/2024
Amagi, the global leader in cloud-based SaaS technology for broadcast and connected TV (CTV), today announced that the 11th edition of the Amagi Global FAST Rep...
03/05/2024
Riedel Communications today announced that Westdeutscher Rundfunk (WDR) is relying on a media and intercom network based on Riedel technology for the renewal of...
03/05/2024
Broadpeak , a leading provider of content delivery network (CDN) and video streaming solutions for content providers and pay-TV operators worldwide, announced t...
03/05/2024
Media technology innovator Limecraft will exhibit the latest updates to its online platform on stand G79 at the 15-16 May 2024 Media Production & Technology Sho...
03/05/2024
Audio interface specialist Prism Sound is partnering with console manufacturer Solid State Logic, professional monitor manufacturer PMC and acoustic panel and d...
03/05/2024
Intinor, Sweden's leading developer of products and solutions for high-quality video over the internet, is set to join forces with its UK partner Zest Techn...
03/05/2024
NAKIVO Inc., a fast-growing software company dedicated to protecting physical, virtual, cloud, and SaaS environments, announced its Q1 2024 financial results to...
03/05/2024
Hiltron Communications announces an addition to its range of satellite communication products and systems: a field-upgradable motorisation kit specifically desi...
03/05/2024
Visit LiveU at Stand D30
With this year an exceptional one for major sporting events alongside multiple, key elections, the power and flexibility of LiveU'...
03/05/2024
Agile Content, the leader in the development of technology and solutions for the provision of television services over the Internet, announces Koldo Unanue as i...
03/05/2024
Eight co-signers representing streaming services, pay TV operators and public interest groups have sent a letter to Congressional leaders urging their Committee...
03/05/2024
BOSTON Brightcove has announced that it has implemented Amazon Q Business, a new generative AI assistant on Amazon Web Services (AWS)....
03/05/2024
NEW YORK CBS has declared that it will finish the 2023-24 season as Americas Most-Watched Network in primetime for the 16th consecutive season....
Compensation for landline and broadband customers when things go wrong 22 March 2017 
