http://www.cbronline.com/article_new...7-1F7D1EEC783C
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Ofcom to ensure broadband charges are fair
4th January 2008
By Staff writer
Ofcom, the UK's telecoms regulator has launched an investigation into the hidden costs consumers claim are being charged by mobile phone and broadband companies, reports TimesOnline.
Ofcom claims to have seen an increase in complaints from customers, who state that they had received unexpected bill amounts for itemised bills, non-direct-debit payment and premium-rate technical helplines, for the services they are subscribed to.
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The telecoms watchdog plans to launch a consultation document about the charges. Ofcom states that this is an attempt to regularise the billing system and make sure that they are clear.
Ed Richards, head of Ofcom, said: "Consumers of communications services see headline prices fall, but they must not be misled... they need confidence that any additional charges are fair, transparent and justified."
Ofcom's report also indicates that several companies charge customers to fix problems. Virgin Media converted its broadband technical helpline to a premium-rate number, charging 25p a minute.
The company claimed it was necessary to stop people from calling the helpline about problems other than broadband.
The report also points out that companies sometimes
levy penalties for payment by means other than direct debit.
An administration fee of £3.50 is charged by Orange for each phone on an account not paid by direct debit, Virgin Media charges £5 a month, while BT has fixed the rate at £4.50 per quarter.
BT sources claim that the company had to introduce the charge because "some payment methods are more costly to process than others".
Ofcom also state that a few mobile companies penalise customers who ask to end their 12-or 18-month contract early.
In such cases, the customers are asked to pay the full monthly rental due for the remainder of the contract period.
The customers are also charged for late payment of bills and restoring a service after it has been suspended for late payment.
According to Weller, customers could be misled because the stealth charges often are not levied for the first three months of a contract.
The fees appear in the fourth month, by which time the customer would have stopped scrutinising the bill."