Ofcom bans automatic contract renewals

Ofcom are changing the way telephony companies tie their users into contracts by banning the use of Automatically Renewable Contracts (ARC).

ARCs can be defined as those which rollover unless users specifically contact their provider and opt out at the end of their initial contract period. This usually leads to users wanting to move providers and being stung with “early cancellation” penalties.

This has led Ofcom to ban the use of ARCs from this December for broadband and fixed line services across the UK.

This is great news for consumers as they will be free to choose the solution that is right for them. Ofcom estimates that around 15% of UK residential customers are on such rollover contracts.

Michael Phillips, from Broadbandchoices, says:

These contracts were effectively locking people in to services that may not be meeting their requirements and were sometimes less competitively priced than newer offerings”.

Here at Gradwell we understand how small businesses need flexibility and pride ourselves on offering short term contracts. Gradwell Operations Director, Barrie Millett, explains:

Our three month short term contracts allow small businesses to ensure they have the right solution for them, at the right time for their business. Gradwell contracts are cancellable on the basis of one month’s notice, meaning they can change to suit their circumstances quickly and easily.”.

To find out more about how your business can benefit from switching to business telephone and broadband services with short term contracts, please visit the Gradwell website or contact our sales team  at sales@gradwell.com or on  01225 800 123.

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2011-09-14T16:28:03+00:00

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