3-year contracts banned in the UK… hopefully Canada follows

Ofcom, the UK independent communications regulator, has stated that “contracts will be limited to a maximum of 24 months”… basically banning 3-year mobile phone contracts. In addition, “consumers and businesses must also be offered a choice of contract lasting no longer than 12 months”. The reason for the change is because “Shorter contracts are likely to promote competition and enable consumers to switch providers more easily to benefit from better prices and services”.

New entrants like WIND, Mobilicity and Public Mobile have all come into market offering customers no-contracts with the hopes of ridding “Canadians from the incumbent providers’ ‘death grip’”. Carriers such as Rogers, Bell and TELUS all have 3-year contracts that offer customers who sign up a significant handset price reduction. Currently there are no plans to have the long 3-year contract option removed.

The United States has a max 2-year contract term and now our friends/family in the United Kingdom followed… it’s now Canada’s turn.

Source: Ofcom
Via: IntoMobile