Budget broadband ISP TalkTalk has today described Ofcom’s plan to introduce a £3.65 price cap in order to control “rip off” calls to premium 118 (Directory Enquires) numbers as “inadequate“. In response they’ve launched a new ‘Call Whisper’ feature that will warn customers about the potentially high costs.
Back in November 2018 Ofcom revealed that the cost of contacting 118 numbers can sometimes spiral up to £20 for an average 90-second call (here). As a result the national telecoms regulator decided to clampdown on the problem by imposing a cap on the cost of calling such services (effective from 1st April 2019), which works out as a maximum charge of £3.65 per 90 seconds.
However, TalkTalk says the cap does not go far enough and remains about “three times the appropriate level.” The ISP has also called on Ofcom to open a Competition Act investigation into TNUK to protect consumers (one of the most expensive 118 providers). “The company holds a dominant market position and currently charges customers 10 times the cost of providing the services, while offering little or no information about pricing structures,” said the ISP.
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Instead TalkTalk believes that the price cap should be set at £1 per 90 second call, although they’re unlikely to overturn Ofcom’s decision by themselves and so have decided to take action by introducing a new feature. In fairness jumping to the £1 charge so soon may be a bit too extreme, although it would probably be popular among consumers.
Essentially call whisper will warn customers about the potentially high cost of using directory enquiry services and advise them to use alternatives. Whenever a customer on the TalkTalk network calls a directory enquiries number, they will now hear the message below:
“This is a message from TalkTalk. Calling 118 numbers such as this one may cost you as much as £19.98 per 90 second call. You may also incur further charges if you’re later connected to the number you need. We strongly recommend that you search for the number for free online. If you hang up now, you won’t be charged for this call.”
Tristia Harrison, TalkTalk’s CEO, said:
“Directory enquiries are there to help consumers rather than to penalise them. Even with the proposed price-cap, companies will continue ripping-off customers – the majority of whom, potentially vulnerable or elderly people, have no idea of the true cost of these calls. We’re also concerned that there are no plans to control the charges when a call is connected onwards, despite this being the greatest incidence of bill shock.
We say to Ofcom and the companies ‘the ball is back in your court’. We’re taking robust action ourselves by launching a new ‘call whisper’ feature to protect our customers which will advise them to use alternative sources of information. Prices must be reduced straight away, and Ofcom must ensure that competition is working in this market which right now is well and truly broken.”
We suspect the 118 companies won’t like this change very much. Equally we’d hope that TalkTalk remembers to adjust their message once the new price cap is introduced in April or give customers who do know how much it costs the ability to disable it.
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