What is it: As of the 1st October 2018, new Ofcom legislation went live, it states:
“all mobile providers must give the option to limit the cost of bills to new customers and to any existing customers who agree to extend their contract or enter into a new contract.”
This means that prior to signing a contract every network (EE, O2, Vodafone and Three) and 3rd party re-seller must highlight and discuss the option to implement bill spend caps on your account against each individual user.
The aim of this legislation is to put in place protective measures for consumers that reduce the amount of unchecked overcharging by the networks.
To access the Ofcom site, please click here.
What does it mean:
From a business perspective it enables the following:
- protects you from being hit with large unexpected charges on the business mobiles
- apply different spend caps dependant on role and responsibilities from junior to senior
- identify users repeatedly abusing the business mobile
- inform the most appropriate tariff for individuals based on their changing usage
This will improve the cost-effectiveness on your account ensuring there are no excessive overspend beyond what you have agreed.
It covers the use of your mobile phone to send text messages, make calls and use data in the UK and whilst roaming.
Your options are:
- No over spend (pay your monthly line rental charge and no more)
- Spend cap set to a pre-determined amount e.g. £20, £100 or more
- Opt out of spend management altogether
Setting a spend cap:
You will be notified by the network when you hit the overspend limit – each network has their own policy, some will notify you prior to hitting the cap others just at the point of hitting the limit.
The spend cap can be changed at any time or turned off completely, any changes will be effective in the next billing month.
Things to check with your network/ service provider:
- What caps are available?
- What notifications are provided?
- Are Premium rate services included?
- How are In App purchases, online shopping etc dealt with?
If you’re not sure about what you might be charged for reference this article the Phone-paid Services Authority (PSA) to get a better understanding Why have I been charged?
Spend management should be used in conjunction with a User Agreement Policy, this determines how employees are expected to use the business mobile and what they may or may not be liable for, as deemed by the business. If you don’t have one in place, we strongly recommend introducing one, we will be sending out an example policy in the next few weeks, but if you need one sooner, please contact us.
Putting in place these measures at the start of a contract makes the management and control of this service a lot easier and mitigates the risk. At Crystaline we pride ourselves on the quality of care and support we provide to our clients.