Broadband: Finance

(asked on 21st June 2021) - View Source

Question to the Department for Digital, Culture, Media & Sport:

To ask the Secretary of State for Digital, Culture, Media and Sport, whether he has had discussions with the Financial Conduct Authority on introducing rules for broadband providers on the same model as its rules from May 2022 for insurers on offering existing customers new customer prices.


Answered by
Matt Warman Portrait
Matt Warman
This question was answered on 24th June 2021

The Secretary of State has not met with the Financial Conduct Authority (FCA) to discuss its new measures on offering existing customers the same prices as new customers. It should be noted however that Ofcom, the independent telecoms regulator, has a statutory duty to further and protect the interests of telecoms consumers and end-users, and as Minister for Digital Infrastructure I have regular engagement with Ofcom on these matters.

In December 2020, the Government strengthened Ofcom’s telecoms consumer protection powers. As a result, Ofcom introduced new rules, in February 2021, so that a customer near the end of their contract will receive a notice from their current provider informing of the date their contract will end; the notice period to leave; the service they receive and price they pay as well as any changes to the service and price should they take no action to renew or move their service. These notices must also include information on the prices available to other customers, including new customers. We consider this approach encourages operators to offer competitive pricing to their loyal customers and equally empowers consumers to switch to better deals if those offers do not meet their needs.

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