Ofcom report: Users signing up to cheaper deals with longer contracts

Ofcom conducts regular surveys to look at the trends in the UK broadband and mobile market, among other fields. It recently revealed results from a survey on the best UK mobile phone providers, where operators Orange and O2 came out on top. Of the study, Claudio Pollack, Ofcom’s consumer group director, stated: “Ofcom hopes this research will both incentivise providers to improve all aspects of their customer service, as well as give consumers valuable information about the standards of customer service when choosing a provider.”

In line with this, Ofcom has also looked into what the UK market prefers when it comes to selecting phone plans. Obviously, the first thing that a lot of subscribers look at is the price or value. How much data will you be allocated with every month? How many free SMS or talk time will you be getting with your subscription? Aside from looking at best value, you will also most likely be looking for a package that will meet your needs as well.

Ofcom recently surveyed users in the UK and Scotland and found that most users are signing on the cheaper deals, as expected. However, the regulator notes that these cheap deals usually have contracts that last longer.

This was revealed in Ofcom’s annual report, The Consumer Experience. The regulator reported that fifty percent of subscribers were locked into contracts. This percentage rose by nine percent from last year’s results.

Vicki Nash, director of Ofcom Scotland, commented: “Longer contracts tend to offer greater choice in terms of handsets, but come with a longer financial commitment and, in some cases, penalties for ending the contract early.”

She added: “We would always urge consumers to check the terms and conditions carefully. Consumers should ensure that the type of services they want are available in their area by utilising coverage checkers available on the operators’ websites.”

The head of policy for Citizens Advice Scotland, Susan McPhee, also said: “The report shows a concerning rise in the numbers of young people and people from low-income households who are taking out mobile phone contracts, increasingly for longer contract periods and for smart phones. Evidence from Citizens Advice Bureaux across Scotland shows mobile phones can be a major source of debt, particularly for young people. Consumer education and empowerment to make genuine and informed choices are vital, especially for those already facing hard economic times.”

Source – Scotsman