New consumer rules will lead to faster broadband, says Ofcom

Half of British households could switch to faster broadband under new rules which mean internet providers will have to tell customers about their best deals, the telecoms regulator Ofcom has said.

A review of broadband pricing is planned, along with a new consumer website - Boost Your Broadband - offering information on broadband services and advice on how to find the best deal.

Ofcom said 94 per cent of UK homes and offices could now access superfast broadband, but fewer than half have taken it up, and many have been paying more than they need to.

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The regulator said the review into pricing practices in the industry would focus on concerns that customers continue to pay too much for internet services after introductory offers had expired.

The new website has been backed by the Government and consumer body Which? as well as consumer champion Gloria Hunniford.

Ofcom Chief Executive Sharon White said: “We’re concerned that many loyal broadband customers aren’t getting the best deal they could.

“So, we’re reviewing broadband pricing practices and ensuring customers get clear, accurate information from their provider about the best deals they offer.”

The new pricing rules will propose that internet companies, as well as mobile, landline and pay-TV providers, must alert customers about their best deals or tariffs.

Consumer Minister Kelly Tolhurst said: “Our consumer protection regime is one of the strongest in the world but there is always more to do to ensure people know their rights.

“I welcome Ofcom’s Boost Your Broadband campaign to help consumers find the best deals. Broadband is a vital service and we want to see people getting a high-quality service without paying more than they need to.”

The Boost Your Broadband website asks users to enter their postcode before telling them the different broadband speeds available. Customers will be offered tips on how to get the best deal from their current provider or an alternative company.

Richard Neudegg, Head of Regulation at the consumer service uSwitch.com, welcomed Ofcom’s announcements.

He said: “As our slowest street data brought to life earlier this week, consumers are getting very different outcomes from the broadband market. And in many cases this is simply due to a lack of awareness about the better services available to them.

“Millions of broadband customers are suffering from poor speeds and are stuck on old technology, when they could be upgrading to faster services and actually paying less.”

Under the new rules, companies must alert customers when any discounted deal they are on is coming to an end, and also every year after that if the customer has not moved to a different deal.

Mr Neudegg added: “It’s welcome that Ofcom has raised awareness of these issues. However, the key news from today’s announcement is that the regulator is planning to take forward refined proposals to force providers to give vital information to customers at the end of their contract, as well as those who are out of contract and in some case have been for years. Historically in telecoms, not enough has been done to put the power back into consumers’ hands.

“If customers are given the right tools, there is a real chance to improve households’ experience of services that are now critical in their day-to-day lives.”