By Tim Ferguson, 17 November 2006 15:40
NEWS
Consumers are confused and overwhelmed by the vast array of services telcos now offer.
A "significant minority" of consumers have trouble working out which company offers the best value or quality of service on particular packages, according to telecoms watchdog Ofcom.
Given the huge range of services available, from phone line and broadband to cable television and mobile phone, consumers find it difficult to choose which would best meet their needs.
Twenty-seven per cent of people find it hard to make cost comparisons for fixed-line phone services, Ofcom research reveals, while 34 per cent find it difficult to choose internet suppliers based on quality of service.
Ofcom CEO Ed Richards said in a statement: "We need to reinforce our efforts to tackle consumer harm."
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A is for ADSL
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E is for Education
F is for Fibre
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H is for HSDPA
I is for In-flight
J is for Janet
K is for Kingston
L is for Landlines
M is for Murdoch
N is for Next generation
O is for Ofcom
P is for Power lines
Q is for Quad-play
R is for Remote working
S is for Satellite phones
T is for Trains
U is for Unbundling
V is for VoIP
W is for WiMax
X is for Xbox
Y is for YouTube
Z is for Zombies
On the bright side, the average price for residential communications service packages has fallen to £74.20 per year from £113.40 in 2001, according to Ofcom.
And once they decide on a package, most customers are satisfied with the service they receive. Around ninety per cent of customers were happy with their fixed-line phone or internet service.
Eighty-three per cent of respondents said they found switching to a new internet provider fairly easy or very easy. Ofcom has called for simplifying the process of switching providers and recently received support from BT for the cause.
According to the research, the majority of fixed line telco complaints relate to the practice of slamming - when telcos switch a customer's service provider without her knowledge.
Comments
There are 3 comments. Join the discussion
1. Richard
Scandal of "non-geographic" numbers:
Much continuing confusion is caused by government officials etc. who talk about "local rate" (ie. 0845...) and "national rate" (ie. 0870...) phone numbers.
Many government departments, including the emergency "help lines" provide only these rip-off phone numbers.
Many people have no idea how much their calls cost... until the bill arrives.
At one time, these numbers may have been necessary to provide "call redirection" and "load balancing."
Surely, BT technology has progressed further than that?
The government should stop pretending that calling these rip-off numbers costs the same as calling a geographic number.
Ofcom should do its job: Simplify the numbering scheme; stop these and other rip-offs; ensure that consumers can know in advance how much a phone call will cost.
2. Simon
Guess the marketing people have done their jobs then - the whole point of the plethora of service plans is to create confusion and prevent comparison. If a customer knows what they should be paying, or could be paying, then they are able to question what you charge them. Only by making sure that no-one (not even the supplier in the case of Orange) knows what the customer is supposed to be paying can they hide the real costs.
3. Alvin Ernest
Market forces will prevail; those player who confused customers will suffers with churn and lower ARPU.
The telco and ISP market needs to wake-up to what FMCG retailers have known for a long time "the customer is always right!" And the customer does not understand technology - that why the "talktalk" proposition is so successful. The language is easy to understand (no difficult jargon - "...free braodband..."), so the overwhelming success is understandable.
As telcos/ISPs begin to understand and craft their proposition using that premise, confusion will disappear and the market is progress towards value creation.