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Ofcom to investigate broadband 'hidden charges'
(28-12-07) - Having recoded an increase in complaints over “hidden charges” applied to broadband and mobile phone packages, Ofcom has decided to launch an investigation next year.
The regulator will produce a consultation document in early 2008 to assess whether such fees - that can dramatically increase bills - are “fair, transparent and justified”, reported http://www.timesonline.co.uk/.
“Although headline prices have been dropping consistently over the past few year, even to the point of TalkTalk's (www.TalkTalk.co.uk) pioneering 'free broadband',” said Michael Phillips, BroadbandChoices.co.uk product director, “ISPs have found numerous ways to boost their profits through additional charges that are only explained in the small print.
“I welcome Ofcom’s decision to examine this issue, and hope that it will raise consumer awareness about the additional costs they face when signing up to many broadband packages, as well as encouraging providers to be more transparent about these ‘hidden costs’.”
Hidden costs applied by broadband providers include levies for exceeding set download limits, charges for hardware and postage, and - one of the major complaints received by Ofcom – excessively high costs for calling technical support lines.
“Both Virgin Media (www.VirginMedia.com) and Orange (www.Orange.co.uk) have been criticised for their premium-rate technical support lines,” said Mr Phillips, “but some providers, such as O2 (www.O2.co.uk) have been listening to customer complaints and are offering free, UK-based technical support lines.”
Ed Richards, Ofcom chief executive said: “Consumers of communications services see headline prices fall, but they must not be misled. They need confidence that any additional charges are fair, transparent and justified.”
Until the consultaion is complete, and any recommendations implemented, Mr Phillips advised that all customers carefully read the small print so that they know exactly when they might incur these hidden charges - and avoid them.
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