Ref: 52/01
Date: 26 July 2001

Final plans for setting up a new Telecoms Ombudsman, in the first half of next year, to resolve disputes between consumers and telecoms companies have been published today by Oftel.

The Ombudsman will provide a new independent and impartial service, enabling consumers to resolve disputes with their telecoms company more quickly and easily without having to go to court.

Oftel has today set out the timetable for the introduction of the Ombudsman. The following are the key stages for implementation:

• The appointment of a Governing Board made up of public interest members;
• The Governing Board to appoint an Ombudsman;
• Agreement of the Ombudsman’s Terms of Reference and detailed Memorandum of Understanding with Oftel;
• Publicity campaign to raise awareness of the Ombudsman’s existence;
• Operational launch of Ombudsman.

Oftel believes that the industry will accept responsibility for establishing and running the scheme. This will ensure industry ownership and commitment and allow for greater flexibility in the detail of the scheme.

Oftel will work closely with the industry and consumer groups to ensure effective implementation and will take any necessary action to keep the project on track.

David Edmonds, Director General of Telecommunications said today:

"I am delighted to be able to announce firm plans for a Telecoms Ombudsman. I look forward to all operators and service providers – both fixed and mobile – rising to the challenge of establishing the scheme by summer 2002 at the latest.

"The Ombudsman will provide consumers with an important service - a free and easy to use scheme to resolve any dispute with their telephone company over their telephone bill or the terms and conditions under which their telephone service is provided.

"The Ombudsman will have the power to investigate disputes and to award compensation to consumers.

"Setting up the Ombudsman is an important example of Oftel and the industry working closely together to the benefit of consumers without the use of formal regulation.

"This self-regulation by the industry allows the scheme to be set up with greater flexibility, speed and efficiency than by introducing a statutory scheme.

"The industry and consumer groups have been right behind the scheme throughout the planning stages. With their continued commitment and co-operation I believe the Ombudsman can be implemented quickly and with great success.

"Oftel firmly believes that the Ombudsman scheme will be a crucial part of the Government’s plans for the future regulation of the communications industry and will continue to work closely with the Government to take those plans forward."

Note to Editors

1. Implementation of the Telecommunications Ombudsman Scheme is available from Oftel's website at www.oftel.gov.uk/publications/consumer/ombu0701.htm. Hard copies are available to the media from Oftel's press office on 020 7634 8991 and to the public from the Research and Information Unit on 020 7634 8761.

2. Access to the Ombudsman Scheme will be limited to residential consumers and small businesses.

3. It is proposed that the maximum value of award that the Ombudsman will be able to make against a member is £5,000.

4. The Governing Board will be appointed according to Nolan principles and should have a balanced mix of experience taken from industry, consumer groups and elsewhere.

5. Further details on the timetable for the implementation of the Ombudsman can be found in chapter 2 of the statement.

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