Otelo – A first class dispute resolution service

In September 1999, Oftel issued a consultation document looking at ways in which disputes might be resolved without the parties having to use the courts. It was argued that an Ombudsman service would be the most appropriate method. Following appropriate consultation, David Edmonds – Director General of Communications – announced firm plans for an Ombudsman service.

The Telecommunications Ombudsman Service was set-up following the work of an implementation working group under the Chairmanship of Sir Edward Osmotherly. Throughout its development, independence from the regulator was an important requirement and otelo now operates as a not-for-profit company funded by its members. Its governance has been designed to protect the independence of the Ombudsman. The Council, which is the company’s non-executive Board, consists of seven members, five of whom are independent and two appointed from the Member Board. Their primary role is to safeguard the independence of the Ombudsman. The Member Board focuses on ensuring appropriate funding for the Service. While the Ombudsman is answerable to the Council for the running of the Service, she is entirely independent in determining complaints.

Member companies

To join the service, a company must be providing services within the Ombudsman’s scope. It then makes an application to the Council, and in doing so undertakes to comply with the terms and conditions of membership. These include co-operating and complying with the Ombudsman’s investigations and decisions.

Otelo began with seven founder members, these were:

• Broadsystem Ventures Ltd;
• BT;
• Centrica (covering OneTel and British Gas Communications);
• ntl Group ltd;
• Powergen UK;
• Virgin Mobile Telecoms Ltd; and
• Vodafone Ltd.

A further eleven companies had joined by the end of August:

• npower;
• Saga;
• Your Communications;
• Tesco;
• Thus;
• IDT Communications;
• 3;
• United Utilities;
• Opal;
• Tweedwind; and
• Uniworld Communications.

Existing members have a combined market share which covers more than 95 per cent of the fixed line market and more than 30% per cent of the mobile market. To check if a company has recently joined the service a check can be made at www.otelo.org.uk or a phone call made to the enquiry line on 0845 050 1614.

The process

Otelo’s office is in Warrington and the team is working hard to ensure that it establishes procedures, using new technologies, which make it as easy as possible for people to contact them and register a complaint. The Service is keen to be accessible to all. At present the easiest way to make a complaint is by phone or email, however other methods of contact are being developed.

Where a complaint arises which seems to come within the Ombudsman’s terms of reference it is important to remember that it must first be raised with the communications provider. The Ombudsman can only help if the member company has been given a chance to sort the problem out. The company will be given three months to sort the problem out unless it is clear that deadlock has been reached before then. After that the Ombudsman can look at complaints where the consumer remains unhappy. The complaint to the Ombudsman must be made within nine months of raising it with the telecoms company or, if the company has issued a letter making clear that there is nothing further they believe they can do – within six months of the date of that letter.

When a complaint to the Ombudsman seems justified, the Ombudsman’s enquiry team will take the details and send out a completed form for the customer to check, sign and return, with any attachments. With this information to hand the investigation process will begin.

If a complaint were to raise regulatory issues, then once the customer’s particular concerns had been addressed it might be appropriate for the Ombudsman to draw the wider issues to the attention of the regulator.

To make sure that the relationship between otelo and Ofcom is clearly understood, a Memorandum of Understanding has been produced. A similar document will set out relations with ICSTIS and The Information Commissioner. These are public documents and will be posted on each of their websites.

Key issues

The build up of contacts to otelo, has been gradual. Time has been needed by Member Companies to change the information about the dispute resolution they provide to their customers and otelo has needed time to establish links with consumer groups and advisers. There is, however, a clear upward trend.

It is too soon to try to draw conclusions about the nature of complaints from the early cases that otelo has handled. hHowever, there does seem to be evidence that frustration and the perception by the customer that no one has looked at all the elements of their complaint, underlies a high proportion of the contacts received.

It has also been evident that communications providers offering a range of services, including voice and internet, should have access to a single dispute resolution service. In accordance with this need, Oon 8 July 2003 Otelo’s Council told Oftel that it had broadened its scope to allow all public communications providers to join.

Looking forward to the future

The Communications Act will help to establish the role of the Ombudsman and make clearer the relationship with the regulator. Ofcom will amongst other things, further the interests of consumers in relevant markets and ensure effective delivery of their needs. The legislation, which incorporates the requirements of the Universal Services Directive, has placed on them a duty to look at the way complaints and disputes are handled by public communications providers. Ofcom must approve codes of practice and ensure that every company’s complaints procedure satisfies a number of tests Under the Communications Act, Oftel (and subsequently Ofcom) must approve communications providers' codes of practice and dispute procedures. The dispute procedures must satisfy a number of tests. In brief it must:

• be independent;
• be easy to use, transparent and effective;
• be free of charge to its domestic and small business customers;
• be able to obtain any information it needs;
• be able to investigate effectively;
• be able to make awards of appropriate compensation; and
• be able to enforce those awards.

Otelo has been set up to meet these criteria and has applied to become the first scheme to be approved by OfcomOftel. Its aim is to provide a first class service of independent and impartial dispute resolution for public communications providers and their customers.

The year ahead will see Otelo build the Service, expand membership, hone skills in resolving disputes and make sure people know that it exists and when it can help. It is now preparing to take on a broader range of complaints from a wider range of public communications providers and in addition the Member Board is considering how changes might be made to the charges levied, to allow for the fact that some potential Members are themselves small businesses.

Otelo’s challenge is to increase its knowledge of its Members’ business and develop expertise. In so doing it will offer a Service which becomes the dispute resolution scheme of choice for the industry, gaining its respect while increasing consumer confidence.

The Ombudsman’s First Report can be viewed on line at http://www.otelo.org.uk