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Author Topic: Ofcom Automatic Compensation Consultation  (Read 1795 times)

ejs

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Ofcom Automatic Compensation Consultation
« on: March 24, 2017, 08:31:28 AM »

https://www.ofcom.org.uk/about-ofcom/latest/media/media-releases/2017/automatic-compensation-landline-broadband-customers

Quote
  • Providers would have to compensate for slow repairs, missed deadlines and appointments
  • Up to £185m in extra compensation would be paid out each year
  • Proposals part of Ofcom’s plan for a step-change in telecoms service quality

I was looking at Jigsaw Research's report attached to the Ofcom consultation, I find the reports like that tend to be more interesting than the consultation document.
Quote from: Jigsaw Research report
30% of consumers expect to be compensated for the impact that the loss of
service had on their household. On average, they would expect approximately
£35 (£10 per day) – to be paid as a credit on their account or in cash

That seems to be substantially more than the price of the service. The Ofcom draft proposal is somewhat less generous than that, minimum of £3 per day for a delayed repair for a total loss of services (delayed being taking longer than 3 working days).

Edit: It is £10 per day, although it does have £3 per day highlighted in yellow in the draft industry code document.
« Last Edit: March 24, 2017, 08:40:56 AM by ejs »
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stevebrass

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Re: Ofcom Automatic Compensation Consultation
« Reply #1 on: March 24, 2017, 08:33:08 AM »

http://www.bbc.co.uk/news/business-39377492

But who decides what a fault is?


[Admin note: two topics merged - roseway]
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Netgear Orbi; BT FTTP with Smart Hub 2

ejs

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Re: Ofcom Automatic Compensation Consultation
« Reply #2 on: March 24, 2017, 09:00:07 AM »

I think Annex 7 can be summarised as they don't really know how much this will put up prices.
Quote
A7.30 For those on lower household income, telecoms may comprise a greater proportion
of their monthly budget. However, even for those taking the lowest priced landline
and broadband packages, we expect that the potential maximum price increase (£9
per annum if pass-through were full – see section 9, paragraph 9.39) would be less
than 4% of their annual telecoms spend.
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sevenlayermuddle

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Re: Ofcom Automatic Compensation Consultation
« Reply #3 on: March 24, 2017, 09:31:06 AM »

I think Annex 7 can be summarised as they don't really know how much this will put up prices.

If they acknowledge it will push up prices (I don't see how it can not) then, from my perspective, it is no different to allowing me to purchase insurance an insurance policy that will pay compensation when faults arise.

Would I choose to purchase such an insurance policy?   No I would not.   Will I have the choice?  No, it seems not. :(
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Chrysalis

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Re: Ofcom Automatic Compensation Consultation
« Reply #4 on: March 24, 2017, 02:02:59 PM »

We need to get away from the obsession of broadband price rises, the recent opoosition to plusnet's fine because it "might" increase prices and penalties for missed appointments.

Note that openreach do compensate the CPs already for missed appointments, so all the CPs need to do is pass that on and its not a extra cost (unless of course their projections have them plan to profiteer from missed appointments).

To me compensation for missed appointments, and delays is a no brainer.  Compensating for a fault itself however is not so clear cut, as the definition of a fault itself isnt even clear cut with ever changing targets (usually more leniant to allow faults to exist).  If the latter is carried out I can see the fault rate's for lines tumbling to reduce compensation payouts.

I expect its ofcom's intention for openreach to bear the cost, so if CP has to compensate then openreach pays the CP, why I think this is based on how ofcom have worked in the past.
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ejs

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Re: Ofcom Automatic Compensation Consultation
« Reply #5 on: March 24, 2017, 03:51:36 PM »

For faults, the consultation document is about total loss of service.

Quote
Consumers should be compensated by their provider where they experience
a total loss of a landline and/or fixed broadband service and the service(s) are
not fully restored by midnight on the second working day after the provider
becomes aware of the loss.

I keep getting confused because the draft code document has different figures than the consultation document. The draft code says three working days, giving the example that if the fault is reported on Monday, compensation becomes payable from midnight on Thursday. But the consultation document says the second working day.

So midnight on the second working day after would be 00:00 Wednesday. But this is longer than Openreach's lowest service maintenance level to fix faults by the end of the next working day plus one. If I'm reading it correctly, if you report a fault on Monday, and the ISP immediately reports it to Openreach, Openreach aim to fix it by the end of Wednesday, but compensation is payable from the start of Wednesday.
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