12 October 2001

Contents

Summary

S.1 This statement sets out the new format for the publication of statistics about consumer complaints made to Oftel.

S.2 The aim of the publication is to provide a broader picture of the level of complaints received by Oftel that will highlight the full range of companies’ relative performance, in a simplified, more user-friendly format.

S.3 The complaints data will be presented in the form of two graphs (see Appendix B graphs using dummy data):

• Fixed line market: Company complaints per 1,000 customers (business and residential combined) per six months
• Mobile market: Company complaints per 1,000 customers (business and residential combined) per six months

Accompanying the company specific data, to give an overall context, will be aggregate information on the issues most complained about for the period in question.

Chapter 1

Background

1.1 In 1998 Oftel issued a consultation document on its proposals to publish statistics about consumer complaints received by Oftel. A statement followed in 1999 and the first publication of complaints data was in December 1999.

1.2 The format of the publication consisted of two tables. The first listed the top ten issues that consumers complained about, showing the companies that the complaints were about. The second table listed the top five companies complained about, weighted by customer base.

1.3 The aim of the publication was to:

• provide a greater incentive on telecoms companies to address the cause of complaints; and
• improve information to consumer representatives and individual consumers to allow customers to make better informed decisions about their choice of service.

1.4 Oftel has reviewed the aim of the publication and future publications will aim to:

• provide a broader picture of the level of complaints received by Oftel that will highlight the relative performance of companies, in a simplified, more user-friendly format.

One reason for this change is the practical difficulty of agreeing figures for the customer base with individual companies. But feedback also suggested that the document would be fairer if it looked at the relative performance of a broader range of companies, rather than focusing on the five worst performing companies. Oftel was also conscious that the existing process, including a three week period to allow named companies to produce comments to be included in the publication, did not facilitate timely publication and therefore reduced the usefulness of the information as a guide to consumers.

1.5 Oftel believes that the focus of the revised publication should be towards providing more information on the relative performance of companies in a simple but relevant way. Whilst individual consumers may find the publication of interest, the aim should be to put data in the public domain in an accessible way. Oftel believes that other sources of information, such as Comparable Performance Indicators (CPIs), the telephone bill comparison web site, and company literature, offer more relevant information to help consumer choice.

1.6 In considering the revised format Oftel has looked closely at the way other organisations, such as Ofgem, Ofwat, the Strategic Rail Authority, and the Department of Health, format their complaints data.

1.7 Although the format of the publication is to be changed the fundamental analysis – that complaints should be assessed as a proportion of the company’s customer base – will remain unchanged and Oftel does not therefore propose formally to consult on the revised format for the information.

1.8 These changes are being introduced in order to improve the usefulness of Oftel’s published data. Oftel is confident of the integrity, accuracy and validity of its processes for compiling complaints data and of the previously published complaints data. An independent audit of the process behind the complaints publication was carried out in 2000. The audit included an analysis of individual consumer complaints. The audit concluded that the published tables were a fair representation of the consumer data held by Oftel.

Chapter 2

How the data will be published

2.1 The data will be presented in the form of two graphs (see Annex B graphs using dummy data):

• Fixed line market: Company complaints per 1,000 customers (business and residential combined) for six month period.
• Mobile market: Company complaints per 1,000 customers (business and residential combined) for six month period.

2.2 Complaints about a company with a customer base of 100,000 and above received during the reporting period will be included. The use of a 100,000 customer base threshold ensures:

• that companies meeting the threshold should be well established and aware of customer concerns, and should have had sufficient time to introduce effective customer services procedures;
• that larger companies are less likely to be prone to large fluctuation in customer numbers and Oftel calculations of complaints per subscriber will remain reliable. These larger companies should also feature in Oftel’s market research surveys which will provide an additional degree of confirmation of the figures supplied.

Reliable customer base information is unavailable for the numerous smaller unlicensed companies. Oftel receives only a small number of complaints about these companies. However, where Oftel receives a large number of complaints (greater than ten per cent of the total complaints in the period) about a particular company even if it has a small customer base (or its base is unknown) then the absolute number of complaints will be published.

2.3 Publication will be six monthly. The data will be published on Oftel’s website.

2.4 It is Oftel’s current intention to no longer seek or include comments from named companies in the publication. Giving all companies time to submit comments delays publication which in turn lessens the relevance of the complaints information. Companies can, after all, publish their own comments in response to the publication.

2.5 Analysis will be based on the number of consumers who make a complaint with Oftel about a company, and not on the number of issues each consumer raises.

2.6 No complaint will be included in the analysis where a consumer does not provide either:

• a full postal address; and/or
• an email address; and/or
• a contact telephone number.

2.7 The analysis will not differentiate between business and residential customers.

2.8 The published data will cover complaints received from the whole UK population and will not seek to distinguish between England, Scotland, Wales and Northern Ireland or between regions.

2.9 Oftel will rely on the latest customer base information supplied to it by companies. The onus is therefore on companies to continue to supply regular customer base information. Oftel will contact companies close to the publication date to confirm base numbers. Where no confirmation is received Oftel will use the last available information.

2.10 The new format does not include information on the issues that consumers are complaining about. However, we will comment on general trends of consumer concern. This will not name individual companies, but will give a feel for the issues that have been raised in each market during the reporting period. We will help illustrate these issues by included some anonymous representative case histories.

2.11 Crown copyright will apply to the published data. The publication of this data is not intended to be either an official endorsement or criticism of the companies named. Where any use in any marketing or advertising exercise is felt to be misleading or otherwise in breach of the relevant Codes of Practice, Oftel will consider referring the matter to the ASA, the RA, or to the ITC.

ASA – Advertising Standards Authority

Calling line identity (CLI) – a facility that enables identification of the number of the line from which a call is being made.

Company – Any telecommunications service provider that Oftel receives complaints about.

Complaint – A complaint is defined as consumer expression of dissatisfaction relating to their company or service.

If the consumer is complaining about one or more lines of a multi-line connection this is counted in the numerator of the calculation as one single complaint, regardless of the number of lines affected.

CPIs – Comparable Performance Indicators: telecoms companies and several consumer organisations, with support from Oftel, have developed a set of comparable performance indicators for a range of telecommunications services. Mobile services are not covered. The information is provided by the telecoms company and by using independent market research companies.

Customer base – The information collected by Oftel on the number of customers a company has relates to the number of lines, or CLIs, that are used by a company’s subscribers. Some companies may provide individual business subscribers with multiple lines, or CLIs, in these cases information provided by the company may only be available on the number of actual customers rather than lines.

Fixed line market – Relates to all services accessed from a fixed telephone line, including BT service, cable service, indirect access, carrier pre-Selection. Internet service provision is not included.

ITC – Independent Television Commission.

Mobile market – Relates to mobile telephony services and service providers. Internet service provision not included

Ofgem – Office of Gas and Electricity Markets

Ofwat – In this instance relates to the Office of Water Services National Consumer Council Regional Customer Service Committees, that deal with consumer complaints

RA – Radio Authority

Annex A

Measure definition

Overview: The measure indicates the level of consumer complaints to Oftel about companies.

Measure Title: Consumer complaints to Oftel per 1,000 customers

Calculation: 1000 * A / B
where
A = Total number of Consumer complaints to Oftel about a company in the 6 month period,
B = Average population of customer base for company during the 6 month period.

Graph Scale: Results are to 2 decimal points, in multiples of 0.25

Annex B