Tech Bitch

Following today’s announcement from Ofcom regarding proposals to curb unfair additional charges levied by communications providers on consumers’ bills, you might want to watch out for hidden charges in the mean time.

The investigation is great and it couldn’t have come sooner. We all continually face the prospect of additional charges from our service provider, which are all too often buried deep in the small print of the contract.

I just hope that the proposals will ensure that extra charges are fair and up front. I also call on ISPs to clearly market the true cost of their service and not hide them away in the terms and conditions. Until Ofcom’s proposal is enforced you should be wary of the following hidden extras.

There are two types of broadband packages when it comes to downloads: ones with set, monthly limits or ‘caps’, and ones that are advertised as ‘unlimited’ but which are almost invariably subject to a fair usage policy. Both can end up costing you extra, or you may find you have the speed of your connection reduced.

Even if you’re signed up to an unlimited package, you could still be restrained under the conditions of your ISP’s ‘fair usage’ policy. If the ISP considers that your monthly downloading is excessive (or unfair to other users) then you could have your speed ‘throttled’ or ‘ports’ blocked, which will affect downloading. You may also have a fixed download limit, which may mean you end up paying an additional fee on top of your monthly rate for big downloads.

If you opt for a ‘no contract’ broadband deal it isn’t quite as straightforward as it seems. In order to cover costs, many ISP’s charge significantly more per month if no long-term contract has been signed. Other providers may charge you an exit fee if you leave during the initial 12 months.

Even if you’ve paid your bill just a few hours late you can still fall foul of late payment fees. Also, check your new contract carefully if you think you might need to cancel before the 12 month term is up. Even if you’re moving house and intending to use the same supplier again, this could still incur a charge. Finally, you’d think ISPs would be happy once they have your money, but additional charges can be incurred for paying by cheque or credit card. Make sure you read the small print and choose a payment method that won’t penalise you if you choose not to pay by direct debit.

Additional fees that are not part of the main service charge must be demonstrably fair and clearly sign posted on marketing materials and product information. Make sure you read through the small print and summarise all the hidden charges alongside the various package options to make an informed decision. I hope that Ofcom’s proposals will encourage companies to be open and straightforward about additional charges, and we’ll all be a little more vigilant when it comes to reading the small print.