2 Outcomes for citizens and consumers
9. There are many positive outcomes in the communications
market: customer satisfaction levels are generally high; good-quality
products and services are widely available; and prices for many
goods and services are falling. However, there are a number of
areas where we believe Ofcom has not done enough to satisfy the
interests of citizens and consumers.[22]
10. Silent calls occur when calling centre equipment
connects a call to a consumer but there is no calling centre operator
available to take over the call. Complaints to Ofcom about these
have risen since 2006, and there will also be many unreported
cases. Ofcom believes that the true volume of silent calls has
actually fallen over the last two years, and that it is publicity
which has caused the number of complaints to rise, but it does
accept that the volume of these calls is still too high. The maximum
fine that it may impose in such cases has recently been increased
to £2 million, which Ofcom believes will be a much more effective
deterrent than the previous limit of £50,000. Along with
the higher fines, Ofcom has warned offending companies that its
regime will be tougher from February 2011. However, because of
the publicity surrounding the increased fines, it expects that
complaints may continue to rise in the early part of 2011.[23]
11. Switching rates in the communications market
are relatively low compared to, for example, the energy and car
insurance sectors.[24]
Some consumers find it extraordinarily difficult and slow to switch
services such as broadband or mobile phone providers. They often
face a lot of confusing information which makes it very difficult
to compare different providers or to interpret what might be gained
or lost by switching. Ofcom agrees that the switching process
should be more convenient for consumers and is currently undertaking
a strategic review in this area.[25]
12. The average price of fixed-line telephone services
has fallen only marginally since 2004, in contrast to a much steeper
fall in the costs of mobile services. This seems to be a reflection
of fixed-line services having originally been a state monopoly,
BT still having the lion's share of the market, and it being hard
to drive down costs of the physical infrastructure. Ofcom's research
shows that, amongst the countries it uses as comparators, prices
for UK consumers are lower than most, and BT has a lower market
share than most other incumbent providers. By contrast, there
is a much more competitive mobile market and there have been significant
technological advances, allowing mobile customers to get a better
deal.[26]
13. Data from the consumer helpline Consumer Direct
shows that three of the goods and services generating the most
complaints in 2009 are ones for which Ofcom has some responsibility.
These are mobile phone service agreements (third highest); landline
telephone services (tenth); and internet service providers (eleventh).
Ofcom agreed that the level of complaints is disappointing.[27]
22 Qq 1, 112; C&AG's Report, para 10 Back
23
Qq 112, 128-129 ; C&AG's Report, para 2.19 Back
24
C&AG's Report, para 2.21 Back
25
Qq 112, 116-117 Back
26
Qq 124-127 Back
27
Qq 122-123; C&AG's Report, para 2.20, Figure 11 Back
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