MSE News: Ofcom sets out plans to stop mobile users paying for handsets they already own

pmduk

Cisco001 wrote: »

All they need to do is get phone company sending a reminding text to inform customer for the date of min contract end around 40 days before contract end.

Then the customer will have sufficient time to decide what they want to do!

How many customers will then start whining that they didn't receive (ie didn't read) the messages sent by networks?

Customers are already aware of the minimum period of a contract. At what point does society stop holding their hand?

boatman

john22 wrote: »

Ofcom’s own words

This means mobile firms would move customers to a different ‘default’ deal when their minimum contract period ends, so they stop paying for their handset, and instead pay only for airtime.

This could be implemented in a number of ways. For example, providers could move customers automatically onto an existing, 30-day, SIM-only deal at the end of their minimum contract period. Because available deals may not include the same features and services as the customer’s previous tariff, providers could match customers to the closest deal.

Today’s consultation looks at some of the challenges to this approach, including customers objecting to having their service changed without explicit consent; potentially losing certain services; or experiencing unexpectedly high bills if the new deal fails to include the same allowances. We have set out ways those risks might be mitigated, such as giving customers the option to opt out.

Alternatively, providers could reduce the monthly cost of the contract to reflect the fact that the handset has been paid off.

At least there is discussions about what to do. I’d rather have this approach than a negative outlook which is just a lazy way of not trying to solve complicated issues.

But what worries me is:

"Consumers who are automatically migrated might also find that they lose certain services or experience bill shock where there is a mismatch between the allowances and offers available on SIM-only deals. That said, providers could clearly mitigate or eliminate some of these effects if they chose to do so."


The word 'could' to a mobile company means, don't bother til forced by regulation..
Of course its good news OFCOM are doing something, my concern is what it might be.. You only have to look at the ridiculous situation of current prices rises and right to leave, its all a bit silly.

pmduk

The best thing would be to move to a situation where phone sales and network contracts are unbundled, however, all parties will fight that to the death as it will cost them dearly.

System

Hmm makes me wonder how many regulations are in place that are of a benefit to the people who are quick to dismiss this possible regulation.

Regulations can never please everyone but are there to strike a balance.

No one has made a solid argument of what is the benefit of phone companies continuing to charge for the phone side after the contract has ended other than you rake in more money. Sorry the only argument is that it helps others to get a better deal which if that’s the case (which I highly doubt) then it’s just a selfish me first attitude which of course is the complete opposite of what ofcom is about.

System

boatman wrote: »

But what worries me is:

"Consumers who are automatically migrated might also find that they lose certain services or experience bill shock where there is a mismatch between the allowances and offers available on SIM-only deals. That said, providers could clearly mitigate or eliminate some of these effects if they chose to do so."


The word 'could' to a mobile company means, don't bother til forced by regulation..
Of course its good news OFCOM are doing something, my concern is what it might be.. You only have to look at the ridiculous situation of current prices rises and right to leave, its all a bit silly.

They still have to try and find a solution as it seems the phone companies don’t want to do anything about it. There is always risks when you want to change the status quo but If you’re not in a position to do it yourself then you have to let the people who can figure it out.

Glass half full mentality

robin58

So how hard is it for the mobile companies to reduce the bill at the end of the contract to just the voice/data plan costs.

Can't be that hard considering the mobile companies know all the cost details for both the phone and voice package.

Basically it's the typical British company con of taking money then blame it on the person who owns the product for not doing anything about it.

Wilt

john22 wrote: »

ok so you like rich lazy phone companies more than rich or lazy people because you get something out of it. (shallow and look out for myself)

There will be no skin off the MNOs nose due to this, so my feelings on rich lazy phone companies makes no difference - they will still be rich and lazy after this change because we will all be paying more.



Nothing shallow about it, and why should the lazy benefit from being lazy whilst I (and many others) lose out? It's not a closed club, anybody can get a cheap SIMO plan once their contract is up.

System

Wilt wrote: »

There will be no skin off the MNOs nose due to this, so my feelings on rich lazy phone companies makes no difference - they will still be rich and lazy after this change because we will all be paying more.



Nothing shallow about it, and why should the lazy benefit from being lazy whilst I (and many others) lose out? It's not a closed club, anybody can get a cheap SIMO plan once their contract is up.

Well contact Ofcom and tell them not to change anything because if they do you will not save as much money off the back of lazy people.

boatman

john22 wrote: »

They still have to try and find a solution as it seems the phone companies don’t want to do anything about it. There is always risks when you want to change the status quo but If you’re not in a position to do it yourself then you have to let the people who can figure it out.
Glass half full mentality

I still think provided the companies tell customers the introductory period is nearly finished, its enough. I'm not sure adding more convoluted regs helps in this case. Of course there will be the inevitable, 'i wasn't told', so perhaps the companies need to show they have used at least 2 methods to inform the person, a call, a text, a letter or an email, writing it on the online bill should not count.

ryan121

Mobile companies are all about increasing monthly spend. When that goes down because of this it's inevitable prices will increase. People who are sim only will probably suffer.