Move follows research showing that consumers are often confused about charges, terms and conditions

January 13, 2011

1 Min Read

LONDON -- Ofcom has today opened an industry-wide monitoring and enforcement programme into the advertisement and sale of international calling cards. This follows research showing that consumers are often confused about the charges and terms and conditions of international calling cards.

Widely used by the UK’s large immigrant population looking to make cheap overseas calls, more than 5 million UK adults use international calling cards. On average, these users spend £13 a month on calls, creating a market that is estimated to be worth hundreds of millions of pounds a year.

In May 2010, Ofcom commissioned research on the international calling card market, investigating the accuracy of information available to consumers in terms of call charges and terms and conditions.The research, which covered a period of two months, looked at cards supplied by the following international calling card companies: The Post Office, IDT, Tesco, Connect, Nobel, Story, Nowtel, Lycatel and iCard.

Performance of cards
In summary, the research found that:

  • 10 per cent of newly purchased cards could not be activated at all and customer services could not resolve this satisfactorily.

  • Overall actual minutes of calls, once charges have been applied, were 28 per cent of advertised minutes and varied significantly between companies and brands.

  • iCard, Lycatel and Nowtel provided a quarter or less of the minutes promised in advertising.

  • The number of actual minutes provided by Connect, The Post Office and Tesco generally matched advertising claims. IDT Crazy exceeded advertised claims and provided more minutes on calls than they had advertised.

  • A quarter of landline to landline calls were subject to early disconnections not initiated by either party making or receiving the call.

    Ofcom

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