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Automatically Renewable Contracts to be banned

http://stakeholders.ofcom.org.uk/consultations/arcs/statement?utm_source=updates&utm_medium=email&utm_campaign=arc
For fixed voice and fixed broadband residential and small business ARCs the prohibition on the sale of new ARCs (-2-) will take effect on 31 December 2011. This means that the sale of new ARCs will be prohibited from that date.
To enable the orderly migration of the existing customer base, we are requiring that ARCs are completely removed from the market (i.e. all existing ARCs customers migrated) by 31 December 2012. We also expect CPs to be proactive in facilitating migration for existing ARCs customers during this period, and to take a flexible approach to ETCs for ARCs customers who wish to exit after the first MCP of their contract.

Comments

  • Heinz
    Heinz Posts: 11,191 Forumite
    Part of the Furniture Combo Breaker Car Insurance Carver!
    Bloody hell! Ofcom actually doing something useful and in citizen consumers' interests!
    Time has moved on (much quicker than it used to - or so it seems at my age) and my previous advice on residential telephony has been or is now gradually being overtaken by changes in the retail market. Hence, I have now deleted links to my previous 'pearls of wisdom'. I sincerely hope they helped save some of you money.
  • Buzby
    Buzby Posts: 8,275 Forumite
    The downside, of course is customers will no longer be given free weekday off-peak calls (which was the quid pro quo on BT for agreeing to the arrangement). They'll be laughing all the way to the bank...
  • Buzby wrote: »
    The downside, of course is customers will no longer be given free weekday off-peak calls (which was the quid pro quo on BT for agreeing to the arrangement). They'll be laughing all the way to the bank...
    No, BT will still give the inducement to catch punters for the first year - and then they will have to contact them all to renew for a further year for the same incentive. Or they will keep them on the same incentive on a rolling month when they realise it is too much work to contact people and they find that people vote with their feet if they lose the incentive.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
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