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Ofcom opens automatic compensation consultation

01 April 2017

Landline and broadband customers who suffer slow repairs, or missed deadlines or appointments, would receive money back from their provider, without having to ask, under plans published by Ofcom.

Ofcom is proposing for customers to be paid automatic compensation, in the form of a cash payment or a credit to their bill.  Ofcom estimates that the plans would mean up to 2.6 million additional landline and broadband customers could receive up to £185m in new compensation payments each year.

One-third of small and medium-sized enterprises (SMEs) use residential landline and broadband services and would also benefit from the proposals. SMEs can negotiate bespoke terms and there are standard landline and broadband business contracts that provide service guarantees and compensation for a number of different problems, including loss of service, but Ofcom's research found that 49% of SMEs were uncertain of their rights when providers fell short. Ofcom is therefore also proposing for greater transparency to help SMEs compare the service quality and compensation arrangements for different contracts, and choose the one that best meets the needs of their business.

The consultation is open until 5 June. Further details can be found here.

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