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Rollover ban will be good for business

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A rollover ban brought into effect on December 31st means that many small businesses will find it easier to shop around for cheaper phone lines, broadband and video conferencing provision.

Initiated by the regulator, Ofcom, the ban means that contracts between telecoms companies and businesses will not be allowed to automatically renew before an old contract has expired.

The move is expected to encourage businesses, especially those small and medium sized ones to change their provider if there is a better deal available and give them more freedom.

It means there will be less chance of companies being fined or penalised for cancelling contracts they did not intend to renew in the first place.

Jonathan Elliott, managing director at Make it Cheaper, said: “Research that we commissioned this year shows that over half of businesses now regularly review their phone contracts so there’s clearly room for improvement.”

An easier opportunity for clients to switch providers should mean that telecoms companies are forced to provide better customer service in order to keep their clients.

They will also need to be competitive in their pricing in order to attract new customers to them and keep the ones they have, instead of swapping to another, better deal.

All businesses should have a look at the alternatives available, as many could save up to 30 per cent on their current arrangements.

Other incentives being offered by some providers include free broadband provision for a year or unlimited phone calls.

Mr Elliot said: “By banning rollovers, Ofcom has made this process much less hassle for busy businesses.”

Ofcom is the regulator for the whole of the communications industry, overseeing practices in areas ranging from television and radio through to postal services, telecoms and the airwaves.

Its duties come under the Communications Act 2003, which mandates it to oversee the sector and makes it accountable to parliament.