Reading time: 5 minutes | Posted: 13th December 2024
It seems that not a week goes by without Ofcom being mentioned in the news, so it’s more than likely that you’ve heard of them. However, if you’re reading this, you might not be clued up on exactly what it does.
Ofcom stands for the Office of Communications. It is the regulatory and competition authority for the UK’s communications industries. It keeps an eye on mobile and home phone services, broadband, TV and radio, the postal service, and the airwaves to ensure that consumers get the most out of their services without being taken advantage of.
As we’re a SIM Only deal comparison site, we’re going to look at how Ofcom regulates mobile network services for the purposes of our guide below.
What Does Ofcom Do?
The Office of Communications is an independent body that the UK government approves to oversee communications services. Ultimately, it’s Ofcom’s job to make sure that companies are operating competitively, fairly, and in the public interest. They keep an eye on a full range of aspects to make sure services are working as they should be and that they are delivering the services to people that they’ve promised. To ensure customers are getting a fair deal and good service, they encourage competition between companies. In terms of the mobile space, this ensures that there is a varied range of networks and services available to customers.
Ofcom and Mobile Networks
It’s Ofcom’s job to make sure mobile networks are delivering on their promises. If they are found to breach any requirements, they could face hefty fines imposed by the watchdog. Here are just some of the things that Ofcom oversees when it comes to mobile networks:
Mobile Network Licensing
Ofcom regulates the airwaves in the UK. These airwaves carry mobile signals that mobile networks need a licence to access. Ofcom issues these to networks like Vodafone and O2 with certain conditions for area coverage and service quality (like call reliability and data speed), which they must adhere to so they are delivering a trusted service to users.
Ensuring Network Coverage
Mobile networks have to report their coverage data to Ofcom so that it can create resources for consumers. It turns this information into coverage maps so customers can check which network has the best service in their area.
Ensuring Service Quality
Ofcom publishes reports on how mobile networks are performing so consumers can make smart choices. It looks at the reliability of calls (how many calls are completed without interruption or dipping out), the speed of data, and customer satisfaction. By providing transparent information on this, this encourages providers to deliver the best service and Looking After Consumers Making sure mobile networks offer fair pricing to the people who use their services is a top priority for Ofcom. They make sure that networks offer transparent pricing with no hidden fees so that customers know what they’re signing up for. They make it easier for customers to change networks so they are not stuck paying above the odds or with a service they’re unhappy with. It also monitors roaming costs since the UK left the EU and is no longer subject to EU rules that previously enforced cost limits. It’s also made calling 0800 numbers free and has put a cap on calling 0845 numbers to reduce unexpected bills.
Competition
As the regulatory and competition authority, Ofcom works to make sure that the market is competitive and isn’t dominated by any one service provider. Part of this work involves investigating mergers, like the Vodafone and Three merger, to make sure that they don’t harm competition or limit the range of services available to consumers. Another way Ofcom ensures fair competition is by overseeing that mobile virtual network operators (MVNOs) such as Tesco Mobile can operate off of the bigger networks’ service.
How Has Ofcom Made Services Better For Consumers In Action?
Above is just a snapshot of how Ofcom regulates mobile networks to ensure a fair and reliable service for consumers. Below are some examples of how Ofcom has improved mobile services.
- Makes Switching Providers Even Easier
Ofcom’s ‘Text to Switch’ service makes it easier and quicker than ever to change network providers for a better deal and keep your number. Simply text ‘PAC’ to 65075 to receive your switching code that you can give to your new provider to arrange the switch. At this point, your current provider must tell you what charges you have left to pay if you’re exiting your contract early. The switch will be completed within one working day.
- Ban of Locked Handsets
Locked handsets that can only be used on one network were banned by Ofcom as it found that for customers, getting their handset unlocked was one of the main factors that would put them off from switching providers. This ban came into force in 2021 and means it’s much easier for consumers to move to a new provider with their existing handset – great for SIM Only customers!
- Clearer Breakdown of Costs
Mobile network providers must give consumers a clear breakdown of how much their phone contracts will cost. For example, they must clearly lay out how much goes towards paying off the physical phone and how much goes towards your monthly calls, texts, and data allowance. When entering into a new contract, customers should also be told how much an alternative SIM Only plan would cost.
- Rules on Roaming Charges
Ofcom issued new rules for roaming in October 2024, designed to protect mobile users from nasty shocks with their bills when they come home from holiday. Now, mobile phone networks must:
- Send roaming alerts to its customers with clear details on charges and limits.
- Providers must remind customers that they can set spending limits to avoid unexpected charges.
Why Is Ofcom Important?
Ultimately, Ofcom’s work helps to protect consumers from being exploited by their mobile providers. Making sure that network providers are delivering on their promises and encouraging healthy competition between them means that mobile users get to benefit from better services and, potentially, even better deals.
