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Ofcom offers hope for bundles of joy that turn sour A simple bundle of joy? Not if one of the services fails to deliver
(about 2 hours later)
The number of households getting their broadband, landline and TV from one provider is booming. Around 63% of UK consumers were signed up to these bundled packages in 2014, more than double the number 10 years ago, according to latest figures from communications watchdog Ofcom.The number of households getting their broadband, landline and TV from one provider is booming. Around 63% of UK consumers were signed up to these bundled packages in 2014, more than double the number 10 years ago, according to latest figures from communications watchdog Ofcom.
In theory, bundling makes life simpler. You get all charges listed on a single bill, avoid the hassle of sorting out each service separately, and may benefit from attractive discounts. But ditching these packages can be a headache if one of the services isn’t up to scratch.In theory, bundling makes life simpler. You get all charges listed on a single bill, avoid the hassle of sorting out each service separately, and may benefit from attractive discounts. But ditching these packages can be a headache if one of the services isn’t up to scratch.
Providers such as Sky, BT and Virgin Media sell TV, internet and phone packages where customers sign up for as long as 24 months – but they can face charges of hundreds of pounds if they try to escape early. Even if the deal is at an end, shifting all the services at once can prove too much of a hassle.Providers such as Sky, BT and Virgin Media sell TV, internet and phone packages where customers sign up for as long as 24 months – but they can face charges of hundreds of pounds if they try to escape early. Even if the deal is at an end, shifting all the services at once can prove too much of a hassle.
Rules announced last week by Ofcom aimed at helping consumers hit by slow broadband speeds to ditch their provider are unlikely to help those trapped in complex bundled packages, experts say. While they will give consumers the right to switch their broadband provider without penalty, those rights do not extend to the rest of the bundle.Rules announced last week by Ofcom aimed at helping consumers hit by slow broadband speeds to ditch their provider are unlikely to help those trapped in complex bundled packages, experts say. While they will give consumers the right to switch their broadband provider without penalty, those rights do not extend to the rest of the bundle.
“Bundled deals tend to include a mix of contracts for each service,” says Richard Neudegg from price-comparison website uSwitch. “As these can be covered by different time periods and rules, it can make it harder for customers to switch all or parts of the bundle if they are not happy.”“Bundled deals tend to include a mix of contracts for each service,” says Richard Neudegg from price-comparison website uSwitch. “As these can be covered by different time periods and rules, it can make it harder for customers to switch all or parts of the bundle if they are not happy.”
Nobody should get a sub-standard service, whether you get your telecoms in a package or individuallyNobody should get a sub-standard service, whether you get your telecoms in a package or individually
He cites pay-TV as one example of where bundles can get a bit more complex. “Many of Ofcom’s rules on switching apply only to the telecoms bits of a bundle, so there can often be more hoops to jump through if your bundle includes, for example, a mobile sim or pay-TV.”He cites pay-TV as one example of where bundles can get a bit more complex. “Many of Ofcom’s rules on switching apply only to the telecoms bits of a bundle, so there can often be more hoops to jump through if your bundle includes, for example, a mobile sim or pay-TV.”
Citizens Advice says the telecoms industy needs to make sure customers can easily switch if they are persistently receiving poor service. Chief executive Gillian Guy says: “Nobody should be stuck with a substandard service, whether you receive your telecoms in a bundled package or individually.”Citizens Advice says the telecoms industy needs to make sure customers can easily switch if they are persistently receiving poor service. Chief executive Gillian Guy says: “Nobody should be stuck with a substandard service, whether you receive your telecoms in a bundled package or individually.”
Anita Staples, 44, claims it is “really stressful” trying to switch away from her Sky bundle. She signed up in 2012 for a TV, landline and broadband deal costing £58 a month.Anita Staples, 44, claims it is “really stressful” trying to switch away from her Sky bundle. She signed up in 2012 for a TV, landline and broadband deal costing £58 a month.
“The broadband connection speed is really slow, and it’s driving me mad,” Staples says. “I spoke to Sky and was told to try all sorts of fixes, but nothing’s worked. I want to switch to another provider but Sky is trying all sorts to keep my custom, such as offering me six months of free movies.“The broadband connection speed is really slow, and it’s driving me mad,” Staples says. “I spoke to Sky and was told to try all sorts of fixes, but nothing’s worked. I want to switch to another provider but Sky is trying all sorts to keep my custom, such as offering me six months of free movies.
“I’m out of my contract term, finally, so at least I don’t face extra fees, but even so I am a bit scared to move anything in case something goes wrong since it’s all my services, rather than one. I work full-time and am too busy to sort any problems. It feels like Sky wouldn’t let me leave anyway.”“I’m out of my contract term, finally, so at least I don’t face extra fees, but even so I am a bit scared to move anything in case something goes wrong since it’s all my services, rather than one. I work full-time and am too busy to sort any problems. It feels like Sky wouldn’t let me leave anyway.”
A spokesperson for Sky stresses its services are flexible, so that you can cancel your Sky TV but keep your broadband, or vice versa.A spokesperson for Sky stresses its services are flexible, so that you can cancel your Sky TV but keep your broadband, or vice versa.
Before signing up to any bundle, get an explanation of what you are buying. According to Ofcom, this should include costs, termination charges and contract periods for each element – in a “clear, comprehensible, prominent and accurate manner”. Providers rarely mention high charges and lock-in penalty clauses, but the information is there in the small print. Explain that you need to go through the contract before signing anything. Ask what the process is if you are unhappy with any of the services.Before signing up to any bundle, get an explanation of what you are buying. According to Ofcom, this should include costs, termination charges and contract periods for each element – in a “clear, comprehensible, prominent and accurate manner”. Providers rarely mention high charges and lock-in penalty clauses, but the information is there in the small print. Explain that you need to go through the contract before signing anything. Ask what the process is if you are unhappy with any of the services.
Steve Nowottny, consumer expert at MoneySavingExpert.com, stresses to check whether the package price will rise when the contract for one component ends. For example, Sky TV currently offers a TV and fibre broadband package where the TV (with 25% off) is on a 12-month contract and fibre broadband an 18-month contract.Steve Nowottny, consumer expert at MoneySavingExpert.com, stresses to check whether the package price will rise when the contract for one component ends. For example, Sky TV currently offers a TV and fibre broadband package where the TV (with 25% off) is on a 12-month contract and fibre broadband an 18-month contract.
“Obviously, after 12 months you will either have to look for a standalone TV package with a different provider, or pay more to keep Sky TV - given the 25% off discount will have ended, though you could always haggle,” he says.“Obviously, after 12 months you will either have to look for a standalone TV package with a different provider, or pay more to keep Sky TV - given the 25% off discount will have ended, though you could always haggle,” he says.
From 20 June, Ofcom will offer a switching service for broadband and landline customers that will remove the need to contact an old supplier before you leave. Necessary information will instead be gathered by the new provider. The service will be available to all customers of providers that use the Openreach network, including BT, Sky, TalkTalk and EE.From 20 June, Ofcom will offer a switching service for broadband and landline customers that will remove the need to contact an old supplier before you leave. Necessary information will instead be gathered by the new provider. The service will be available to all customers of providers that use the Openreach network, including BT, Sky, TalkTalk and EE.
Ofcom is looking into how this might apply to Virgin Media customers, who at present won’t be covered by the rule and will still need to contact both their new provider to set up the contract and their exiting provider to cancel their deal.Ofcom is looking into how this might apply to Virgin Media customers, who at present won’t be covered by the rule and will still need to contact both their new provider to set up the contract and their exiting provider to cancel their deal.
If you want to switch your services, contact the provider you wish to move to, and explain what you want to do. It should be able to give you details on which process you need to follow. Regardless of the process, you have a 14-day cooling off period from the date you enter into a contract with a new provider to cancel your request to switch without being charged.If you want to switch your services, contact the provider you wish to move to, and explain what you want to do. It should be able to give you details on which process you need to follow. Regardless of the process, you have a 14-day cooling off period from the date you enter into a contract with a new provider to cancel your request to switch without being charged.
If you have a problem with how a bundle was sold, or just one particular service, the first port of call should be the provider. If your issue isn’t resolved for eight weeks you can contact one of two Ofcom-backed schemes: the Communications and Internet Services Adjudication Scheme (call 020 7520 3827) or the Ombudsman Services: Communications (call 0330 440 1614). Your provider will be a member of one of these. They provide a free service to solve disputes between firms and customers.If you have a problem with how a bundle was sold, or just one particular service, the first port of call should be the provider. If your issue isn’t resolved for eight weeks you can contact one of two Ofcom-backed schemes: the Communications and Internet Services Adjudication Scheme (call 020 7520 3827) or the Ombudsman Services: Communications (call 0330 440 1614). Your provider will be a member of one of these. They provide a free service to solve disputes between firms and customers.