Ofcom may cut complaint escalation timeframe despite telco objectionsOfcom may cut complaint escalation timeframe despite telco objections
Ofcom wants to reduce the amount of time customers have to wait before escalating their unresolved telecoms complaints to an alternative dispute resolution scheme, despite the fact that a couple of telcos disagree.
January 17, 2025
The UK regulator has been working on a review of the market's alternative dispute resolution schemes, or ADRs, for just over a year and this week shared details of the changes it proposes to make.
Chief amongst those is a proposal to allow customers to take their complaints to such a scheme once they have waited six weeks without satisfactory resolution from their service provider. As it stands, the timeframe is set at eight weeks.
The proposed change reflects the fact that most customer complaints to telecom providers are resolved within six weeks, and most of the remainder fail to reach resolution even after eight, Ofcom explained. Specifically, 79% of complaints received by the UK's main providers between January 2022 and 2024 were resolved within a week, rising to 94% after six weeks, Ofcom said.
Just 19% of the remaining complainants got their issue resolved within the additional two weeks, Ofcom said, essentially suggesting that they represent dead time. Those remaining complainants numbered 700,000, incidentally, which means we're looking at around 3.7 million complaints in total over the period. That's not a small number, either in absolute terms or relative to population size; over 5% of the population complained to their service provider during that period.
But that's not really the point here. We're actually looking at whether those complainants could have their issues resolved in a more timely fashion. Ofcom believes so, hence the consultation. But the service providers themselves are not convinced.
Clearly there was already talk afoot of changing the timeframe, because when Ofcom received responses to its market review in March last year a couple of telcos made it clear they believed an eight-week limit to be appropriate.
"We understand that some stakeholders may call for a shorter than 8-week period before a consumer can take their claim to ADR, but we believe that the current 8-week process is working well," BT said, in its response to Ofcom. "It affords CPs a fair and reasonable timeframe to investigate, fix issues for consumers, and if necessary, escalate those issues - while keeping consumers informed throughout the 8 weeks. A shorter timeframe would not allow us sufficient time to properly evaluate and help customers."
Meanwhile, Gigaclear noted that while certain consumer bodies had called for a shorter timescale, it did not agree.
"Whilst this may be feasible in certain cases, as an Alt-Net we are of the view that the period of time of 8 weeks should remain," it wrote. "This timescale is particularly required where a consumer may have an issue with the delivery of network infrastructure to their property or connection to a network, which will require significant investigation and involve third party contractors."
Ultimately, it appears Ofcom bowed to pressure from those consumer groups. It will be interesting to see whether the telcos have changed their minds when, and if, they respond to the consultation.
Interested parties have until 12 March to provide feedback, with Ofcom planning to publish its final decision this summer.
Update 12/01/25: After publication of this article, Ofcom announced new rules that come into force today which state Telecoms providers must now set out upfront, in pounds and pence, any price rises that will apply to customer contracts. Natalie Black CBE, Ofcom’s Group Director for Networks and Communications said: “More than ever, households want and need to plan their budgets. Our new rules mean there will be no nasty surprises, and customers will know how much they will be paying and when, through clear labelling.”
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