Vorboss Push For Ofcom to Implement Automatic Compensation for Business Broadband Customers

Vorboss, the go-to provider of direct internet connectivity solutions for businesses across London, is urging Ofcom to implement an automatic compensation system tailored for business clients.

Back in 2019, Ofcom rolled out automatic compensation measures for consumers, which not only boosted compensation payouts but also spurred quicker resolutions to connectivity issues. Vorboss contends that now is the opportune moment to extend similar safeguards to safeguard UK businesses.

This plea coincides with Vorboss’s own investigation into productivity, revealing a staggering £17.6 billion economic loss across the UK in the past year due to connectivity disruptions, with London bearing £5.7 billion of that burden, equivalent to over 1% of the city’s GDP.

On average, UK businesses suffered a £11,000 economic blow from connectivity hiccups over the past year, while London-based businesses felt an even heavier hit at £18,620. These losses translate to approximately 314 lost hours of productivity per business in London alone.

To foster a competitive environment centered on service quality and bolster the performance of business connectivity networks, Vorboss has reached out to Ofcom, advocating for the adoption of an automatic compensation framework for fixed business connectivity providers.

Vorboss is also leading by example, offering to be a founding member of such a scheme, ready to implement automated compensation for both new and existing clientele.

Tim Creswick, the visionary CEO behind Vorboss, underscored the urgency of addressing these challenges, emphasizing the immense productivity gains that could stem from enhanced network quality.

“We should all be incentivised to compete on quality – that would force an uplift in network performance, and in turn drive a much-needed economic boost.

“Ofcom’s introduction of automatic compensation in the consumer market has been a success, pushing service providers to improve quality, while giving customers reassurance that compensation is real and tangible. If the scheme was extended to include businesses, we would see the same benefits, along with a significant productivity boost to London and the UK economy through reduced outages.”

Over half (51%) of businesses with fixed business internet contracts reported experiencing at least one service disruption in the past year. In bustling London, this figure jumps to 60%. Nearly one-fifth (19%) of businesses encountered three or more outages, with London-based businesses bearing the brunt, tallying up to 28% experiencing three or more disruptions.

Surprisingly, despite these setbacks, a staggering 61% of affected businesses did not receive any compensation. Among those who refrained from seeking compensation, 44% cited the hassle and time involved in requesting it, while 34% simply didn’t anticipate receiving any compensation at all.

Despite Ofcom’s efforts to bolster business engagement with Service Level Agreements (SLAs) and compensation, recent studies unveiled a glaring lack of awareness regarding these provisions among businesses. Dissatisfaction with the compensation provided also remains high. With the government expanding Ofcom’s responsibilities to include considerations for UK economic growth, Vorboss is stepping up its game.

Vorboss is rolling out automatic compensation for both new and existing business customers, spanning direct and wholesale channels. If a Vorboss business internet connection drops for more than four minutes, customers will automatically receive at least one day’s worth of service credits. For outages surpassing 24 hours, customers will receive a generous payout equivalent to two months’ worth of service credits.

The Vorboss report was written by Assembly Research, incorporating ONS data and data from a YouGov survey commissioned in February 2024.

Emily Turner

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