{"id":34205,"date":"2023-04-17T07:38:47","date_gmt":"2023-04-17T06:38:47","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=34205"},"modified":"2023-04-17T07:38:47","modified_gmt":"2023-04-17T06:38:47","slug":"smart-data-council-looks-to-tackle-broadband-isp-loyalty-penalties","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2023\/04\/smart-data-council-looks-to-tackle-broadband-isp-loyalty-penalties.html","title":{"rendered":"Smart Data Council Looks to Tackle Broadband ISP Loyalty Penalties"},"content":{"rendered":"

The UK’s Department for Business and Trade (DBT) has today launched a new “Smart Data Council<\/em>“, which aims to help cut consumer bills, such as by finding ways to make it easier for consumers and businesses to find the tariffs best suited to their needs, or reduce the “loyalty penalty<\/em>” that customers face when switching providers.<\/p>\n

For example, new customers to a broadband ISP, mobile or home phone service frequently benefit from big discounts that are designed to attract them, which often run for the length of your first contract term. After that the price you pay typically increases, often dramatically, and customers who choose to remain loyal (post-contract) may find that they can\u2019t access the same deals as new customers.<\/p>\n

On top of that we recently highlighted how far too many broadband ISPs in the UK – particularly larger players – still fail to clearly inform their customers of how much their package will cost post-contract (here<\/a>). As a result, consumers often feel misled when it comes time to re-contract.<\/p>\n

The new council suggests that the loyalty penalty, the difference between what loyal and new consumers pay for the same service, currently sits at \u00a31,114 a year for households across mobile, mortgages and broadband. But it believes this situation could be improved by harnessing “Smart Data<\/em>“.<\/p>\n

Smart Data?<\/strong><\/span><\/h3>\n

Smart Data is said to involve the “secure sharing of customer data with authorised third parties to help improve services for consumers<\/em>“. The government’s DBT suggests that a wider adoption of Smart Data “will make it easier for more consumers and small businesses to switch providers of some utilities, therefore supporting families to save money<\/em>.”<\/p>\n

The aim here seems to be to replicate the success of Open Banking<\/strong> in other sectors, which “could include telecoms and energy<\/em>“. At present we’re not quite sure how all of this would work in the broadband and mobile sector. The former, with its mass of alternative networks and ISPs working across multiple networks, is also particularly complex and confusing.<\/p>\n

This kind of approach might also open the way to so-called ‘Personalised Pricing<\/strong>‘ (i.e. when providers adopt the ability to set different prices for different customers, based on individual characteristics), which often seems to have almost as many pros as cons (here<\/a>).<\/p>\n

Kevin Hollinrake, Business and Trade Minister, said:<\/strong><\/p>\n

“Smart Data can be a real game changer for consumers across the UK, potentially saving people hundreds or even thousands of pounds a year.<\/p>\n

Our new Smart Data Council will build on the success of Open Banking and spearhead measures in sectors like SME finance, energy and telecoms, increasing competition and putting more money in the pockets of consumers and small firms.”<\/p><\/blockquote>\n

The inaugural meeting of the new council will take place on Tuesday 25th April 2023 next week and the council itself involves representatives from Ofcom<\/a>, Citizens Advice, Ofgem, various government departments, the Open Data Institute and many more (see below for a full list).<\/p>\n

We should point out that, in recent years, Ofcom<\/a> has implemented various changes to help tackle the current issues, such as the introduction of Social Tariffs<\/strong><\/a> and End-of-Contract Notifications<\/strong><\/a> (ECN). This system requires all broadband, mobile, phone and pay TV providers to issue such notifications to existing subscribers at the end of their term, which are designed to keep them informed about the best deals on their current provider and to boost switching.<\/p>\n

We were also supposed to have gained access to a faster and simpler One Touch Switch<\/strong> (OTS) migration system for switching provider this month, which would have worked across multiple different broadband networks. But sadly the ISP industry is still nowhere near ready and that has pushed the launch back at least 6 months and possibly a fair bit longer (here<\/a>).<\/p>\n

\n
\n

Council Members:<\/span><\/h3>\n
    \n
  • The Department for Business and Trade<\/li>\n
  • HM Treasury<\/li>\n
  • The Department for Energy Security and Net Zero<\/li>\n
  • The Department for Science, Innovation and Technology<\/li>\n
  • The Information Commissioner\u2019s Office<\/li>\n
  • Ofcom<\/li>\n
  • Ofgem<\/li>\n
  • The Financial Conduct Authority<\/li>\n
  • The Competition and Markets Authority<\/li>\n
  • TechUK<\/li>\n
  • Innovate Finance<\/li>\n
  • Icebreaker One<\/li>\n
  • Citizens Advice<\/li>\n
  • The Coalition for a Digital Economy (COADEC)<\/li>\n
  • Open Data Institute<\/li>\n
  • Ctrl-Shift<\/li>\n
  • Open Banking Implementation Entity (OBIE)<\/li>\n
  • The Investing and Saving Alliance (TISA)<\/li>\n<\/ul>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    The UK’s Department for Business and Trade (DBT) has today launched a new “Smart Data Council“, which aims to help cut consumer bills, such as by finding ways to make it easier for consumers and businesses to find the tariffs best suited to their needs, or reduce the “loyalty penalty” that customers face when switching […]<\/p>\n","protected":false},"author":1,"featured_media":33112,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1,1645],"tags":[36,38],"class_list":["post-34205","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","category-key_uk_isp_industry_developments","tag-ofcom-regulation","tag-politics"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nSmart Data Council Looks to Tackle Broadband ISP Loyalty Penalties - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The UK's Department for Business and Trade (DBT) has today launched a new "Smart Data Council", which aims to help cut consumer bills, such as by finding\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2023\/04\/smart-data-council-looks-to-tackle-broadband-isp-loyalty-penalties.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Smart Data Council Looks to Tackle Broadband ISP Loyalty Penalties - 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