Ref: 63/02
Date: 25 October 2002

New guidance on how telephone companies can help consumers manage their phone bills and avoid being disconnected has been published today by Oftel and the telecoms industry.

The guidance recommends that all telephone companies produce codes of practice that will give residential consumers advice on issues such as the payment of bills and how to minimise the risk of getting into debt.

In particular, it sets out areas of policy that telecoms companies should address and provides standards of best practice in these areas.

The aim is for telecoms companies to promote consumer awareness of their disconnection procedures, and encourage greater consistency within the telecoms industry on such issues.

The guidance has been put together by the Disconnections Steering Group which includes telecoms companies who have over ninety per cent of the residential fixed call market between them. They have agreed to follow the guidance in their future codes of practice on disconnection.

The guidance is in line with the Communications White Paper which stated that the telecoms industry should assume more responsibility for the payment of customer bills and disconnection levels.

Although primarily aimed at fixed telephone companies, the guidance sets out principles that could be adopted more widely by other operators such as mobile service providers.

Peter Waller, Oftel’s Deputy Director General, said today:

"The new guidance published today will help telecoms companies establish a consistent approach to disconnection policy.

"Some operators already have codes of practice for disconnection in place. But an industry-wide approach will help increase consumer awareness so they know what would happen if, for example, they could not pay a bill or wanted to defer a payment.

"The Government indicated in the Communications White Paper that it wants the telecoms industry to take more responsibility for the payment of consumer bills. The new guidance is an important step in fulfilling this expectation.

"The guidance is a joint initiative by Oftel, the industry and consumer groups, and in line with Oftel’s strategy, is an example of successful co-regulation."

Oftel plans to monitor each company’s code in the future to ensure that it conforms to the guidance.

Notes to editors

1. Guidance for providers of publicly available telecoms services on the content and scope of a company code of practice to help customers to manage their bills and avoid disconnection is available on Oftel’s website at www.oftel.gov.uk/publications/ind_guidelines/disco1002.pdf. 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. The guidelines have been put together by The Disconnections Steering Group (DSG) is made up of Oftel, representatives of the telecoms industry (BT, Kingston, Centrica, Telewest and ntl:) and consumer groups (RNIB/DIEL and CCE). The DSG was established in December 2001 and is chaired by Lady Pauline Ashley.

3. The guidance follows the Government’s request in the Communications White Paper for industry to take a degree of collective responsibility for payment of bills and disconnection levels. The Government’s Communications White Paper is available at the Department of Industry’s website at www.communicationswhitepaper.gov.uk.