Ofcom sets automatic compensation for broadband customers receiving poor service

Ofcom has revealed a new automatic compensation scheme to payout to customers receiving delayed or poor service by their broadband or landline provider. The regulator has invited all major broadband and landline providers to sign-up for this initiative. At present Sky, BT, TalkTalk, Zen Internet and Virgin Media have all signed up. By these major providers taking part in the scheme, 90% of the population get covered by the proposed automatic compensation scheme.

The new scheme of Ofcom will set payout amounts of money for every issue a customer experienced. For example, a repair if delayed after the stopping of the service is not fixed within 2 days, the customer will be entitled to get £8 a day for that service delayed. If a pre-agreed appointment is missed by an engineer, the customer is entitled for a £25 payment. Whereas, if the start of a new service is delayed, the affected customer will get £8 per day for the service that is not switched on.

The watchdog organisation believes £142 million will be paid out by the new automatic compensation scheme. This is 9 times of what is already being paid out to customers! The MD of Home Services Alex Neill, at Which? the consumer publication,says they are happy that compensation for poor broadband is to be made automatic, as it’s become an essential part now of our daily life.

The broadband market of UK is currently offering some of the slowest speeds in Europe. It has been accused in the past of misleading advertising also. This is Ofcom’s latest move in its attempt to reform the industry. Ofcom had earlier proposed in October changes in its rules that will force ISP’s to guarantee speeds that they advertise and if not corrected, allow the subscriber to exit contracts without penalty at anytime. A final decision on these proposals is awaited and may come out in the early part of the coming year.

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