British providers of fixed telephone and Internet networks and an agreement - each subscriber will automatically receive compensation for the account.
The reason for the payments were delays in the emergency repair of infrastructure.
/ Unsplash / Nick Fewings')
Who participates in the initiative and how did it come about
To introduce automatic payments to individuals for too long repair of networks in 2017 was
offered by the organization
Ofcom - it regulates the activities of telecommunications companies in the UK. According to Ofcom, telecoms
compensate losses to users of home Internet and telephone in only one of seven cases, when it comes to emergency situations.
The average payout is ÂŁ 3.69 per day for lack of communication and ÂŁ 2.39 per day for postponing repairs at the initiative of the provider. But the regulator considered these amounts insufficient. So, small business suffers from a small amount of compensation - about 30% of such companies in the UK
use telecom services for individuals because of their low prices.
The largest British telecom providers have joined Ofcom. BT, Sky, TalkTalk, Virgin Media and Zen Internet have already entered into an agreement, Hyperoptic and Vodafone will become part of the initiative during 2019, and EE in 2020. These organizations serve 95% of UK users of fixed Internet and fixed telephone lines.
How is the process of compensation for damages
All providers participating in the agreement provide services to customers through the Openreach network infrastructure. She is responsible for maintaining cable and fiber optic networks. In the case of a long-term restoration of communication lines, Openreach will pay telecoms, after which the latter will cover the losses of their customers. Subscribers will receive payments to their personal account to pay for the Internet or phone within 30 calendar days after the incident. The agreement establishes a fixed amount of compensation:
- ÂŁ 8 per day for no internet connection or phone connection due to a network crash. Payments begin if the service has not been restored within two business days.
- ÂŁ 5 per day for a delayed start of the service. Compensation will be charged to new customers of telecoms who could not start using the Internet or telephone within the period specified by the provider.
- ÂŁ 25 for canceling an engineer visit. Customers will receive compensation if Openreach specialists do not appear at the appointed time or refuse to visit less than a day before it.
There are cases in which providers will not pay compensation. For example, a user of telecom services will lose the right to compensation for damages if he does not agree to the visit of the repair service at the time proposed for recording. Also, compensation will not be paid if connection problems are caused by a natural disaster or occur due to the client’s fault. Providers have already begun the transition to a new compensation scheme from April 1, 2019 Companies will have 15 months to prepare for the automated payment of compensation.
Pros and cons of the scheme
An advantage of the Ofcom plan is that it will benefit consumers of services - individuals, as well as small and medium-sized companies. Providers went to meet customers, and Openreach agreed to pay compensation even in cases where it could not repair the network through no fault of its own. For example, if access to equipment blocked a parked car.
/ Flickr / nate bolt / CC BY-SABut there are “gray zones” in the agreement, which may already have a negative impact on providers. For example, Ofcom does not require payment of compensation in the event of natural disasters, but does not consider damage to such situations during a repair delay due to bad weather.
On the other hand, the agreement does not cancel compensation in case of other force majeure circumstances, such as employee strikes. The problem has not yet been resolved, and providers may incur losses if they do not reach a compromise solution together with the regulator.
What is compensated in other countries
In Australia, the lack of an Internet connection or telephone connection is compensated according to the requirements of the Competition and Consumer Protection Commission (ACCC). Clients can receive a deduction for payment for services for the days when the provider’s services were unavailable, or to compensate for the cost of alternative services. For example, if he was forced to use the mobile Internet, the telecom should reimburse him the cost of communication.
In Germany there is a similar practice, but with more interesting formulations. So in 2013, a German court
recognized the Internet connection as an "integral part of life" and decided that the Internet provider must in due order compensate for the absence of a connection.
The British compensation scheme stands out. For the time being, it is the only one of its kind, when telecom clients receive compensation automatically. If the initiative succeeds, similar projects will probably be considered in other countries.
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