Ofcom Negotiates Contract Cancellation Fee Cuts

The UK's telecoms regulator Ofcom has agreed a deal with the principal suppliers of fixed-line services to cut the early contract termination charges they impose, thus making it easier for customers to switch suppliers. Fixed-line incumbent BT and cable operator Virgin Media were the last to agree to the cuts. These are the two largest operators in the fixed-line voice market, and also in the broadband market in the UK. Cutting early termination fees will effectively sharpen the levels of competition within the fixed-line market and could weigh on the market share of any operator that fails to deliver high-quality services. BMI fears it may not bode well for BT.

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