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Terminating A Telecom contract 'early'


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Ofcom appears to be doing something to limit subscribers exposure to early termination penalties levie by telecom companies.


When a customer knowingly (or unknowingly, due to their innatention) signs up to a contract, there will be a minimum term of anything from 12 months (Virgin) to 18 months (BT, Talk Talk) etc. Terminating means you get hit with a final bill based on your monthly bill cost until the end of the term.


Ofcom state that they plan to prohibit this, effectively slashing the cost of any commitment. See today's 'The Times' for more info - however, the changes do NOT mean the outlawing of the charging scheme, simply the capping to around £3pm of any outstanding commitment.


They also indicate they are looking to do a similar deal for MOBILE contracts, however, when this comes into being, you will rpboably discover the cost of handsets will rocket, as the reasons for the subsidy are being circumnavigated.

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