Just before Christmas, AGCOM (Communications Regulatory Authority) approved and published the new regulation on contracts relating to the provision of electronic communications services. Telecom operators must adapt their respective ones contractual models and adopt all necessary measures so that end users have, before the conclusion of the contract, the information listed in the provision. Although the ultimate goal, as highlighted by the Authority, is to offer greater protections to end users, the new regulation could lead to increases in telephone rates and data during 2024. Curiously, considering the scope of the provision, up to now there has been little talk about it.
In our article we want to focus on the most important innovations contained in the AGCOM regulationhighlighting its real impact for consumers, micro and small businesses
businesses and non-profit organizations.
Increases in telephone rates resulting from contractual adjustments
Telecommunications operators are not authorized to apply the tariffs they deem most appropriate and most in line with their business. The pricing policies gradually applied they must in fact be examined by AGCOM, which defines the perimeter within which each supplier can move.
The main operators, however, have often complained about the application of tariffs that are too low, especially when compared with the trend of theinflation. Thus, they proposed to apply a series of changes to existing contracts, while at the same time introducing new “standards” for contracts stipulated ex new with end users.
Adjustment of prices to inflation
Examining the text of the AGCOM regulation, we learn that the Authority has only partially accepted the operators’ requests. The latter, in fact, have the right to propose changes to the contractual conditions to customers and can actually provide for a periodic adjustment to theconsumer price index. The application of the new tariffs, however, can only take place afterwards explicit acceptance, in written formby the end user. In the event that the user does not accept the modification, the contractual conditions already provided for must remain in force (article 8-quater).
AGCOM also clarifies that the reference index to be taken into consideration for adjust telephone rates is the FOI (National index of consumer prices for families of workers and employees). This is the only tool that can be used to evaluate inflation trends and modulate the prices offered annually to customers holding contracts for telecommunications services.
Obviously, if inflation were to fall, the prices of telephone tariffs will also have to fall. For contracts linked to the FOI index, therefore, the operator is required to adjust the prices by offering canons more reduced to end users.
In which case the user can switch to an offer without adjustment to the FOI index
Even if the subscriber had accepted a contract with adjustment to the FOI index, in the event that the prices of subscription fees were subject to a variation greater than 5%, the user can still ask the operator to switch to a commercial offer with similar characteristics, which does not include the adjustment mechanism. This type of migration needs to happen Without costs for the user. The withdrawal, therefore, is not foreseen following a tariff adjustment that follows inflation. Unless the variation compared to the prices applied does not exceed the 5% ceiling.
Contracts containing corrective measures
In the document approved by AGCOM, it is established that the prices proposed by telecommunications providers and accepted by customers cannot increase on the basis of corrective arbitrarily applied. In general, therefore, the operator cannot “create a tariff on his own” by adding additional fees compared to the variation returned by the FOI index.
In any case, the possible application of a tariff adjustment to inflation (FOI index) cannot occur, in the first instance, before 12 months from the signing of the contract.
Adjustment clauses that do not require explicit confirmation by the user are void
Some Europen telecommunications operators have already provided for inflation adjustment in their contracts by inserting clauses that AGCOM already does not consider valid today. The introduction of a “modulation” of the prices on the basis of the FOI index, in fact, it is not admissible when the customer has not approved it explicitly and in writing.
AGCOM therefore specifies that any adjustment clauses of consumer prices already communicated and introduced in the past in contracts must be considered nothing in the absence of collection
of explicit consent. Consent that at this point, probably, the various providers will try to obtain in the shortest time possible. Otherwise, they will have to apply fixed rates agreed with each customer to avoid receiving requests withdrawal without costs.
When it is possible to withdraw
End users have the right to withdraw from the contract or to change operator, without incurring any penalties or the application of deactivation costs, after notification of changes to the contractual conditions. This is except in the case where the changes are exclusively for the benefit of the end user or are of a purely administrative nature and have no negative effect on the end user or, again, are imposed directly by Union law as well as by national legislation.
The Authority also establishes that in the event of significant, continuous or frequently recurring discrepancies, of the performance of the connection compared to the minimum values indicated contractually (download, upload, latency, maximum packet loss rate), the end user has the right to withdraw from the contract without incurring any costs, without prejudice to the right to compensation provided for by the contract or from sector regulations for the inefficiencies suffered.
To certify Internet speed in case of non-compliance with the contract, AGCOM still offers the free utility today Ne.Me.Sys. (Network Measurement System), which we have talked about extensively in the past.
Information obligations on contracts
In the phase prior to the signing of the contract, each operator undertakes to provide indication of the minimum quality levels of the service and the specific quality parameters guaranteed. Where no minimum level of service quality is offered, this must be communicated.
As regards prices, operators are asked to detail any recurring costs or related to consumption. For example, in case an offer flat provides for the application of particular rates when a certain threshold is exceeded (number of Gigabytes exchanged, minutes of calls, SMS sent,…), the provider must clearly specify the costs incurred by the user.
Specifically, operators are required to provide a contractual summary in order to inform the user about the main conditions, before they are actually accepted:
- the name, address and contact details of the operator and, if different, the contact details for any complaints;
- the main characteristics of each service provided including any mechanisms
indexing; - the respective prices for activating the electronic communication service and for recurring or consumption-related costs, if the service is provided in exchange for a direct cash payment;
- the duration of the contract and the conditions of renewal and termination;
- the extent to which products and services are designed for end users with disabilities;
- tools that can be used to monitor Internet access or communications services billed based on consumption in terms of time or volume.
Duration of contracts
AGCOM reiterates that the contracts…