Services and Billing

Ofcom confirmed in September 2011 that rollover contracts will be banned from December 2011.

The contracts, also known as Automatically Renewable Contracts (ARCs), roll forward to a new minimum contract period – with penalties for leaving – unless the customer actively opts out of the renewal.

The ban will apply to ARCs for fixed voice and fixed broadband services sold to residential and small business customers.

Ofcom has set out a timetable for the removal of rollover contracts from the telecoms market which takes account of systems changes that will need to be made by communications providers.

The sale of new automatically renewable contracts to residential and small business customers will be prohibited from 31 December 2011.

Ofcom will also require communications providers to move all residential and small business customers currently on rollover contracts to alternative deals, and to completely remove rollover contracts from the market by 31 December 2012.

Any customer who has a rollover contract and has concerns or wants to understand how the removal will apply to them should contact their provider.

Providers who continue to offer this type of contract to new customers beyond 31 December 2011, or those who continue to have customers on ARCs beyond 31 December 2012 could face enforcement action including a financial penalty of up to ten per cent of turnover.

Read our statement