26 March 2004
MPs have urged the telecommunications watchdog to spend more of its budget helping consumers decide between service providers and price packages.
A Public Accounts Committee report published on March 23 said Ofcom – which took over the regulatory functions of Oftel last December – should demonstrate its commitment to consumers by drawing greater attention to the potential savings available to them.
PAC chair Edward Leigh said it was 'unacceptable' that, 20 years after privatisation, BT still held 70% of the telecommunications market, despite the existence of competitive alternatives.
Although the regulator has a budget of £19.5m, the PAC found that in 2002/03 only 0.2% of it – £45,000 – was spent on external publicity.
'There is no doubt that consumers… need more help to make properly informed choices. But Oftel is remote from consumers and spends only a tiny slice of its budget on external publicity,' Leigh said.
'Oftel must back up its claims to place the consumer at the heart of its work by drawing public attention to the savings available from switching.'
PFmar2004
