Page 72 - SAMENA Trends - December 2023

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Ofcom Orders Clearer Broadband Tariffs, Proposes Ban on Inflation-Linked

Mid-Contract Price Hikes; Social Tariff Take-Up Doubles

UK telecoms regulator Ofcom has issued will apply from 16 September 2024. Ofcom when any changes to prices will occur.’ A
new guidance to fixed broadband providers has also proposed a ban on ‘inflation- consultation period on this proposal ends
to ensure consumers are given clear linked’ mid-contract price rises for mobile/ 13 February 2024, with a final decision
information when signing up to a service. fixed phone, fixed broadband and pay- scheduled for ‘spring 2024’, and Ofcom
Operators must now tell consumers TV services. The regulator provisionally expects the ruling to take effect four
about the network that underpins their concluded that these price hikes ‘can months after the decision’s publication.
service using only terms that are clear cause substantial amounts of consumer Separately, Ofcom reported that take-
and unambiguous, specifically confirming harm by complicating the process of up of social tariffs – cheaper packages
whether the network they use is a ‘full-fiber’ shopping for a deal, limiting consumer for people claiming Universal Credit,
network, i.e. fiber-to-the-premises (FTTP) – engagement, and making competition Pension Credit and certain other benefits
with fiber all the way to a customer’s home less effective as a result,’ adding: ‘These – for fixed broadband and/or mobile/fixed
or business premises – or a ‘part-fiber’, terms also require customers to unfairly phone services increased to 380,000 in
copper (xDSL), or cable access network. assume the risk and burden of financial September 2023, up from 147,000 a year
Ofcom notes that some providers currently uncertainty from inflation, with tangible earlier. However, the watchdog added
use the term ‘fiber’ ambiguously, referring impacts on their ability to manage costs at that awareness among eligible customers
variously to fiber-to-the-cabinet (FTTC), a time when household budgets are already ‘remains a challenge’: its research showed
FTTP or cable (HFC) technologies. Ofcom stretched to the limit.’ Ofcom proposes to 55% of eligible households remain unaware
added that its research showed only 46% require any price written into a customer’s of social tariffs, and while take-up is
of customers who reported being on ‘full- contract ‘to be set out in pounds and pence, improving, it remains low as a proportion of
fiber’ broadband were living in areas where prominently and transparently, at the qualifying homes, at 8.3%.
it is actually available. The new guidance point of sale’ including ‘being clear about

Kenyan MPs State Termination Rates Should Be Cut Further

Kenyan MPs have called on the the FTR and MTR will drop from the current the protection of consumers. However,
Communications Authority (CA) to reduce level of KES0.58 (USD0.0038) per minute to members of the National Assembly’s
fixed and mobile termination rates (FTRs KES0.41 on 1 March 2024 for a period of Communication, Information and
and MTRs) further, claiming that the two years. In a press release, the CA said Innovation Committee have questioned
recently announced cut in costs did not go the new rate was informed by the prevailing why CA failed to cut the rates to KES0.06 as
far enough, reports Business Daily. Last economic environment, ICT market recommended by a study it commissioned.
month the telecoms regulator published dynamics and the need to strike a balance
Determination No. 4 of 2023, under which between the promotion of investment and

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