By Anton D. Nagy | May 26, 2011 8:17 AM
Independent regulator and competition authority for the UK communications industries, Ofcom, has ruled that, starting today, May 26, as a result of new European telecoms law, no carrier can offer longer than two-year contracts.
The rule applies for both new phone and broadband contracts which starting today will be limited to a maximum of 24 months. Some carriers offered three-year contracts but according to Ofcom regulations, network operators must offer a choice of contract lasting no longer than 12 months. “Shorter contracts are likely to promote competition and enable consumers to switch providers more easily to benefit from better prices and services”. What do you think would be the proper tie-in period for a contract? Is three years too much? How about two years?