Insights

Digital Economy Act (DEA) – The gift that keeps on giving

BILLMONITOR | OCTOBER 8, 2018

Positive changes on the back of 2017’s Digital Economy Act (DEA) continued in the telecoms space this month with the implementation of a more transparent capping process for mobile phone ‘out of plan’ fees. 

As of 1st October 2018, the communication’s regulator Ofcom has implemented a new set of contract ‘capping’ rules, which will allow customers to avoid paying additional charges on their mobile phone bill. What this means is that, going forward, customers taking out new contracts will have the opportunity to request a set limit on their bills.

The DEA ensures that Ofcom’s appeals process falls in line with that of the other regulators, which has essentially made it easier for Ofcom to implement rules and changes without being caught in lengthy court challenges initiated by big telecoms providers. This has resulted in more effective regulation from Ofcom, which includes the new capping protocol implemented this month. 

How it works:

If you don’t want to go beyond your allowance and incur additional costs, you can set your out-of-allowance limit to £0. Equally, if you feel more comfortable with a buffer, you can set your limit to £5, £10 and so on. It is important to note that even if you do reach your cap and services like text, calls and data are disabled, you will still be able to reach emergency services. 

What the new rules don’t consider are charges made by third parties, such as calls or texts to premium lines, as well as contracts that are already in play, which won’t benefit from the new protocol. 

 

Read the full post from Ofcom


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