UK telecom regulator Ofcom has proposed a ban on the automatic renewals of landline and broadband connection contracts, arguing that such practices are anti-competitive.
At present, as soon as a typical 12 or 18-month contract comes to an end, customers are signed up for another one without their consent and sometimes without their knowledge.
According to the telecom watchdog, approximately 15% of UK residential consumers are on such contracts called as rollover contracts, which are being provided by many telecom providers including BT.
However, Ofcom will give a chance to the industry to justify why rollover contracts should continue. The consultation will continue till 12 May 2011, and after that firms may be banned "by the summer".
Among the responsibilities of the regulator are to ensure that people in the UK get the best from their communications services and are protected from scams and sharp practices, while ensuring that competition can thrive.
