Better value for money for KC customers

Consumers in Hull could soon benefit from better value for money communications packages under moves unveiled by Ofcom today.

Ofcom is proposing to allow KC, the communications provider in Hull and part of the KCOM Group PLC, to bundle broadband, landline and other services.

This will allow KC to offer its customers similar service bundles to those offered by other communications providers throughout the rest of the UK.

As bundling can often work out cheaper for consumers, today’s move could potentially lead to better value packages for KC customers.

Bundling restrictions

Up until last year both BT and KCOM were restricted from bundling their services because of their market dominance.

Ofcom removed these restrictions from BT in September 2009, allowing it to bundle communications products such as broadband and telephone services.

But at that time Ofcom concluded that KCOM still had ‘significant market power’ in providing landlines and broadband in Hull and its restrictions remained in place.

However, Ofcom is concerned that these regulations may prevent Hull residents from benefitting from the innovation and choice in the communications market that has been seen elsewhere in the UK.

Proposals

To ensure that consumers in Hull get the most benefit from bundles, Ofcom has today proposed to remove restrictions on bundling provided that:

•             bundles are made available to all residents and businesses in the Hull area;

•             prices for bundles are published on KC’s website; and

•             prices are set in a way that will not discourage other communications providers from offering their services to consumers in Hull, should they wish to do so.

Read Ofcom’s consultation on enabling KC to bundle its services

Bundling

Throughout the rest of the UK, many communications providers offer discounts to consumers when they buy two or more services.

According to Ofcom’s latest figures,  half  of UK consumers bought a bundle of communications services of two or more services in the first quarter of 2010, up from 29% in 2005.

Click here to read more about bundling

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