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20|11|07

Ofcom tracks the Consumer Experience in 2007

Ofcom has today published its second annual research and policy evaluation reports which look at the consumer’s experience of telecoms, the internet and digital broadcasting in the UK.

Ofcom’s research report tracks the experience of disadvantaged consumer groups. Key findings in this area include:

• Take-up of mobile, broadband and digital TV has increased significantly among 65+ year olds and low-income groups since 2006. However, take-up amongst these groups remains below average and Ofcom will continue to monitor this carefully;
• Affordability is no longer the most significant barrier preventing people in low-income groups taking up communications services. Financial management (such as banking preferences and availability of pay as you go options) and personal circumstances are more likely to influence choice and take-up;
• Take-up of mobile phones by the hearing impaired has increased by 15% since 2006. While this is still lower than average, Ofcom’s qualitative research shows that text-based communication has changed the lives of many hearing impaired people.

The research also highlights trends in the communications market overall, for example:

• Competition is continuing to drive price reductions – a typical “basket” of residential telecoms services costs £69.85 a month, £35 less than in 2002;
• 2007 has seen the increased availability of bundles of products and services – 40% of households are now taking more than one service from the same provider – up by a third on 2006;
• Internet protection, particularly with regard to children, remains a key consumer concern – two thirds of consumers are very concerned about internet security. Ofcom will contribute to the Byron Review, launched by the Government in September to review this area and is expecting to publish its evidence shortly.

The policy evaluation report measures progress on a number of Ofcom’s consumer protection projects. In each of these areas work continues to ensure compliance with the rules and that protection for consumers is strengthened.

• Silent calls: Ofcom introduced new rules in 2006 to tackle this problem and has taken enforcement action against a number of organisations. Calls to BT’s Nuisance Call Bureau about silent calls have fallen by three quarters since the start of 2006. Earlier this year Ofcom extended its investigation to monitor and enforce these rules; Switching broadband providers: Ofcom introduced new rules to make it easier to switch broadband provider in February 2007. Since March 2007:
  • the number of complaints to Ofcom about Migration Authorisation Codes (MAC) has fallen by three quarters.
  • calls to BT Wholesale about tag on the line (TAG) issues have fallen by more than half. (TAG prevents consumers signing up to a new broadband service because there is, or appears to be, another broadband connection already registered to that telephone line).
    Ofcom continues to investigate compliance with the new rules across the industry and is working closely with the Office of the Telecoms Adjudicator to deliver further improvement to consumers’ experience of changing their broadband supplier;
• Fixed-line mis-selling and slamming: Since introducing new rules to combat these practices, Ofcom has taken enforcement against the worst offenders. Industry data shows that the number of cancelled orders – one key indicator of mis-selling - has almost halved since October 2006. Earlier this year Ofcom confirmed it would continue to investigate compliance with the rules on sales and marketing, and will take enforcement action wherever appropriate.

However, there are other issues that are driving increased consumer concerns since last year, including:

• Additional charges (such as receiving an itemised bill or paying by means other than direct debit): consumers must have confidence that any charges for services are fair, transparent and justified. Ofcom is currently reviewing these additional charges across the industry;
• Broadband speeds: advertised headline broadband speeds do not reflect actual speeds delivered. Ofcom is currently working with ASA and industry to make sure consumers have clear and accurate information about broadband speeds to address concerns;
• Mobile mis-selling, slamming and “cash-back” deals: the voluntary Code of Practice introduced by mobile providers this year has not yet delivered a sufficient reduction in complaints. Ofcom has started a formal review to decide whether to set mandatory requirements for providers in this area.

The full reports can be found in the related items.

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