We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedTechnology

Vodafone slams Ofcom's 'exit without penalty' proposal


Such a move will damage the market, says operator

Article comments

UK mobile operator Vodafone has struck out at Ofcom's proposal to allow consumers to exit their landline, broadband or mobile contract without penalty if their provider introduces any price increase during the term of the contract.

According to Vodafone, the regulator's proposal risks generating "significant confusion" and could potentially result in the cost of contracts increasing, thereby damaging the market.

"We believe there is work to be done to ensure that customers understand the need for long-term contracts and to ensure they are protected during that time, but Ofcom first needs to understand the difference between the prices that are set by mobile phone companies and those which are not," Vodafone said in a statement.

"We simply do not control many of the charges faced by consumers. They are set by third parties and mobile phone companies have to pass those costs on or they will be subsidising other companies."

Vodafone said that mobile operators could not be held accountable should BT, for example, put up the price of directory enquiry services, premium rate and 08 calls to premium rate, nor could it be expected to swallow the price rise itself.

Under Ofcom's proposals, new customers could find themselves paying different prices for different services, depending on which third party has recently increased its prices, said Vodafone.

"At a time when both the regulator and consumer groups are calling for prices to be simpler to understand, Ofcom's proposals could take the industry back to a time when consumers were faced with a bewildering array of prices for calling different numbers," the company said.

"We will of course be engaging with Ofcom to see how they intend to prevent price gouging by third parties, widespread consumer confusion about prices and increases in the up-front cost of getting a phone."

While the "exit without penalty" rule is Ofcom's preferred solution, the consultation also considers several other possible approaches to address price rises in fixed term contracts.

The regulator is now inviting stakeholders to offer views on all the options put forward for consultation. The consultation closes on 14 March 2013 and Ofcom expects to publish a decision in June 2013.

Share:

Recommended Articles

Comments

Vodafone slams Ofcom's 'exit without penalty' proposal
Technology

Security technology checklist for CFOs

Security technology checklist for CFOs

Cyber threats are increasing in scale, scope and frequencymore ..


Google misses forecasts as cost per click revenue dips

Challenges in the mobile market continue to be a factormore ..

Well over a third of CFOs can't see the point of digital technology

Some 40 percent of finance chiefs adopt the ostrich positionmore ..

Diageo turns to tech start-ups to give it the edge

Wants to get ahead of disruptive innovation by putting it in the centre of its businessmore ..

Who needs big data anyhow?

OPINION: where next for the CFO’s big data budget?more ..

Why your online identity can never really be erased

Privacy advocates agree individuals need to take responsibility for their own privacymore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..

Advertisement

* *