Automatic Renewal of Broadband Contracts Are No Longer Valid

Thursday, January 5th 2012

Individual users as well as business enterprises will no longer be signed up for contracts that will go on for years on end.

As per the new Ofcom rules that have been introduced, automatic renewal of broadband contracts stand cancelled from the beginning of the week.

In the past, there have been providers who had indirectly provided their silent permission to users to renew their contract for broadband, which implied that consumers only had to inform the provider of their plans to stop the service.

Ofcom statistic approximates that about 15% of the users as well as many, many small business firms were locked into continuing contracts for either for broadband or for telephone facilities.

With the introduction of Ofcom’s new regulations, users would be in a position to change broadband providers whenever they wanted once their existing contract with the provider had expired, and they would not have to pay any fine for it either.

Gerald Thomas, a small businessman owning a flower shop, and newsagents in Ammanford, Carmarthenshire was happy to hear about this new regulation. He stated that it was a real Godsend for people with small businesses that Ofcom had brought in the new regulation barring roll-over contracts.

He said that companies should always have the freedom to look for contracts that would offer them the best bargain.

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