Fair treatment and easier switching for broadband and mobile customers Implementation of the new European Electronic Communications Code Fair treatment and easier switching for broadband and mobile customers – Welsh overview Non-confidential version – redacted for publication [] STATEMENT AND CONSULTATION: Publication Date: 27 October 2020 Closing Date for Responses: 30 November 2020 Contents Section 1. Overview 1 2. Introduction and background 5 3. Approach to implementation of the end-user rights provisions of the EECC 14 4. Changes to the defined terms used in the General Conditions 22 5. Providing contract information and a contract summary 45 6. Helping customers manage their usage, publication of information and provision of data to third parties 79 7. Contract duration and termination 104 8. Right to exit 136 9. Switching and porting 160 10. Disincentives to switch: mobile device locking 197 11. Disincentives to switch: non-coterminous linked contracts 223 12. Providing communications in accessible formats for disabled customers and emergency video relay 235 13. Availability of services and access to emergency services 249 14. Legal tests 259 15. Proposed minor changes to the General Conditions, Metering and Billing Direction and the Numbering Plan 264 Annex A1. Responding to this consultation 277 A2. Ofcom’s consultation principles 279 A3. Consultation coversheet 280 A4. Consultation questions 281 1. Overview Fairness for customers is a priority for Ofcom. We want people to shop around with confidence, make informed choices, switch easily and get a fair deal. As part of this work, we are putting in place a package of measures that protect broadband, mobile, pay TV and landline customers, to help make sure they get a fair deal. This implements changes to European rules. The Government set out in July how it will reflect these changes in UK law, and confirmed that Ofcom should implement the customer protections in full. What we have decided Banning mobile providers from selling ‘locked’ devices. Some providers sell locked devices so they cannot be used on another network. If customers want to keep using the same device after they switch, this creates additional hassle and can put people off from switching altogether. So, we’re banning the sale of locked mobile devices to remove this hurdle for customers. This will come into force in December 2021. Making broadband switching easier and more reliable. Customers need to be able to switch providers easily to take advantage of the deals available to them. When customers look to change provider, we are requiring their new broadband provider to lead the switch and offer a seamless switching experience. This is regardless of whether they are moving across different fixed networks (for example, between Virgin Media and a provider using the Openreach network or a full fibre network provider such as CityFibre) or between providers that use the same fixed network, but connect customers using different technologies. Any loss of service that occurs during a switch must not be longer than one working day and providers must compensate customers if things go wrong. We are also banning notice period charges beyond the switch date for residential customers switching their fixed services. These are significant changes to how switching processes work and as such, the new rules will come into force in December 2022. Better contract information and stronger rights to exit. Customers will be given the information they need in writing, before they sign a contract – including a summary of key contract terms. We are also giving customers the right to exit their contract if providers make changes that they were not previously told about and are not to their benefit during the period they are locked into their contract. This right to exit will also apply to other services or equipment bought as part of a bundle with a communications service. These new rules will come into force in June 2022. Making sure disabled customers have equivalent access to information about their communications services. Any customer who needs accessible formats to be used because of their disabilities will be able to request communications be sent in a format that meets their needs (such as in braille). This includes any communications about their service (except for marketing materials), such as price changes or payment reminders. This will come into force in December 2021. 1 Background 1.1 In December 2019, we proposed a package of measures to further protect customers and help make sure they get a fair deal. These measures were put forward to implement the new customer protections in the European Electronic Communications Code (EECC). This is an EU directive that updates the regulations for communications services, which needs to be implemented by 21 December 2020. 1.2 The UK left the European Union on 31 January 2020, with a transition period until 31 December 2020. During the transition period, under the terms of the Withdrawal Agreement, the UK remains under obligation to implement EU directives into domestic law. In July 2020, the UK Government confirmed the changes it is making to the law to implement the EECC by 21 December 2020. It also stated that Ofcom should proceed to implement the customer protections in the EECC in full, as planned. 1.3 We received a range of responses to our December consultation, from communications providers, consumer bodies, advocacy groups, industry bodies, other organisations and individuals. Some respondents were supportive of our proposals, while others raised some concerns, including about implementation timings and the impact of specific proposals. In light of responses, we consulted further on two revised proposals in July 2020. 1.4 We have considered all the comments we received on the proposals we set out in both the December 2019 and July 2020 consultations. Many of the new customer protections in the EECC are mandatory requirements that we are required to implement. In some cases, we have decided it is appropriate to make modifications to take account of comments received. 1.5 In this document we set out the main changes we have decided to make to our rules to implement the EECC. 1 Alongside this, we are publishing a statement on changes to our accreditation scheme for price comparison websites, including changes to implement EECC rules regarding independent comparison tools. New rule banning mobile providers from selling ‘locked’ devices 1.6 Currently, BT Mobile/EE, Tesco Mobile and Vodafone sell devices that are locked and cannot be used on other networks until they are unlocked. However, other providers – including O2, Sky, Three and Virgin Mobile – choose to sell unlocked devices to their customers. 1.7 While many people manage to unlock their device without difficulty, some experience difficulties such as a long delay before getting the code they need to unlock their device; or a loss of service if they didn’t realise their device was locked before they tried to switch. 1 We have already implemented one aspect of the EECC - the requirements on providers to send end-of-contract notifications and annual best tariff information to residential and business customers (which came into effect from February 2020). As part of this statement we have also decided to revise the scope of the existing annual best tariff information rules, and these changes will come into effect from the date of this statement. 2 These potential difficulties can deter customers from switching and finding a better deal. Our evidence suggests that just over one third of customers who had considered switching, but decided not to, said device locking was one of the factors that put them off. 1.8 Our new rule to ban providers from selling locked devices to residential customers will make sure all providers sell unlocked devices starting in December 2021. New rules to make broadband switching easier and more reliable 1.9 Easy, reliable switching is important for customers and for supporting future investment in - and take-up of - faster, more reliable broadband. As required by the EECC, we are introducing new rules to ensure a customer’s new provider leads the switch. Also, our new rules include requirements that a switch is carried out in the shortest possible time and on the date agreed by the customer. The new rules will come into force in December 2022. 1.10 While there are already regulated processes for switching within the Openreach and KCOM fixed copper networks and between mobile providers, there are currently no regulated processes in place for residential customers switching between providers on different fixed networks, or providers of full-fibre services. At our request, the Office of the Telecoms Adjudicator (OTA) has been working with industry to seek to develop a new process for residential fixed switches, in line with the new requirements and to ensure they are effective for customers. As industry has to date been unable to agree on a single process, we will shortly consult on proposals to establish the new process. Better contract information and stronger rights to exit 1.11 We are changing the current rules on the information given to customers when they enter into a contract. Under our new rules, which will come into effect in June 2022, customers will be given a short summary of the main contract terms, to help them make an informed decision about the services they are choosing, and a more detailed set of contract information, in writing, before they are tied into that contract. 1.12 In addition, we are setting new rules to strengthen customers’ right to exit their contract if providers choose to make changes to their contractual terms mid-contract. Currently, customers only have this right if a contractual change particularly disadvantages them. Under the new rules, which also come into effect in June 2022, a broader set of changes to the contract terms would give a customer the right to exit.