Ofcom Bans Three Year Mobile Contracts In The UK, Probably Makes Those In Canada Jealous [UK Wireless Carriers Must Offer A 12 Month Contract, However Those Longer Than 24 Months Are Now Illegal]

Posted on TFTS by Robert Nelson on Friday, 27. May 2011 under: Mobile/Cell Phones

Many who think of three year mobile contracts will likely think of Canada. Of course, that is because those up in Canada are often stuck making a three year commitment or paying a rather large up front cost for a decent phone. That said, it looks like those in Canada are probably a bit jealous of those in the UK right about now.

The news is coming from Ofcom, the UK communications regulator, who has banned all mobile agreements longer than 24 months. Yup, three year agreements are now illegal in the UK. According to a statement from Ofcom;

“contracts will be limited to a maximum of 24 months”

Of course, this is what we typically see here in the US, a two year agreement is the norm. Interestingly enough though, it seems that Ofcom has ruled this in an effort to promote competition.

“Shorter contracts are likely to promote competition and enable consumers to switch providers more easily to benefit from better prices and services.”

And while that makes perfect sense to me (as a mobile customer always looking for a good deal or perfect phone), it seems a bit strange to see rules changing to actually make that happen.

In addition to the ruling where agreements longer than 24 months would be banned, Ofcom has also stated that customers “must also be offered a choice of contract lasting no longer than 12 months.” And lastly, some other recent changes in terms of mobile in the UK include that;

From 26 May 2011, mobile providers will be obliged to make the scheme [texting 999 for emergency] available on a permanent basis for hearing and speech-impaired consumers.
The new regulations require mobile providers to port customers’ mobile phone numbers to a new provider within one working day.
Providers will also have to pay reasonable compensation to customers should they not port the number within one working day, or if there is an abuse of the porting process.

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