Ofcom Launch Mobile bill capping rules

Earlier this month the communications regulator Ofcom introduced new rules to ensure customers are not paying excessive additional charges on their mobile phone bills.

Customers taking out new contracts or renewing their existing contract will now be able to request a spending limit on their bill.

Ofcom’s intention to cap the out of bundle fees was initially announced in May 2017, but it has now been rolled out so that all new contracts must comply with these rules.

The reason for the new rules is to provide fairer, more transparent pricing on mobile phone contracts.

They have also introduced a rule which means operators must separate the cost of the handset from the airtime tariff to ensure customers understand their bill more clearly and are not paying an unfair price for their contract once the handset has been paid for.

The spending cap means that, if they wish, customers can set a spending limit for when they have used all their inclusive allowance. The aim is to stop customers from incurring large overspends, particularly when it comes to data usage in the UK and while roaming.

For example, if a limit of £0.00 is set, this would mean that once a handset has used all its inclusive allowance the service for this handset will be disabled until the start of the new contract month. Some customers may choose to set up a small overspend limit to ensure they still have control but are less likely to be disabled. Others may choose to have no spending limit at all. The idea is that it is the customer’s choice.

Here at Porrima we have been speaking to our customers ahead of the rules coming into effect and have enhanced our Proposal Manager software tool to ensure that your teams can easily implement the new spending cap regulations.

When completing a proposal you will automatically be prompted to enter a spending cap for each mobile connection in the proposal. You also have the option of opting out of the cap if your customer wishes to do so.

The spending cap prompt is initiated at the PO stage, once the proposal has been agreed to. As a result, the process of compiling a proposal is not slowed down, something which is of key importance to salespeople working in the industry.

For more information about Proposal Manager and its features, contact us today and we can arrange a 30 day free trial.

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