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UK - Ofcom bans rollover contracts

by Josie Sephton | 9月 13, 2011

The UK telecoms regulator Ofcom, today announced the end of rollover contracts. Rollover contracts tie landline and broadband customers into repeated minimum contract period, with penalties for leaving, unless they opt out.

The ban will be enforced as of 31st December this year and it will apply to landline and broadband services sold to residential and SME customers.

According to Ofcom?s estimation, BT is currently the largest provider offering these contracts with approximately 15% of UK residential customers on rollover contracts. Other residential providers include Adept Telecom, Axis Telecom, Eze Talk and iTalk, while TalkTalk Business, Titan Telecoms, and Optimum Calls offer rollover contracts to business users. Providers are required to remove all residential and SME customers currently on rollover contracts to alternative deals by 31st December 2011. All sales of rollover contracts will be prohibited from 31st December.

This is mainly great news for consumers who often let these contracts due to oversight, which has undoubtedly been in favour of the providers.

Ofcom's announcement

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