Ofcom has fined Virgin Media £23.8 million after vulnerable customers were cut off from vital telecare services during the company’s rollout of digital landlines.
The regulator said the disconnections, which took place between August 2022 and December 2023, left some customers at “material risk” when their telecare devices stopped working. Virgin Media later paused the migration programme.
The fine marks the latest regulatory setback for Virgin Media O2, which has previously faced scrutiny over poor customer service.
Telecoms providers across the UK are in the process of moving households from the ageing copper-based telephone network (known as PSTN) to fibre-based digital lines. But Ofcom’s investigation found Virgin Media failed to follow its own policies for protecting vulnerable consumers during the switch.
Launched in December 2023, the probe concluded that Virgin Media had breached Ofcom’s consumer protection rules by not ensuring fair and appropriate treatment of customers reliant on telecare.
The switch away from copper-based landline technology hasn’t been straightforward for other companies, either. In 2023, other providers also paused migration of vulnerable customers. Migrated users reported they were unable to call 999 during a power cut. Telecoms providers have addressed those concerns by providing vulnerable customers with a battery pack or hybrid devices, that also connect to a mobile network.
Ofcom’s findings
In the investigation leading to the £23.8 million fine, Ofcom discovered:
- Virgin Media failed properly to identify and record the status of telecare customers, resulting in significant gaps in the screening process. This meant that those affected did not receive the appropriate level of tailored support through the migration process.
- Virgin Media’s approach to disconnecting Telecare customers who did not engage in the migration process, despite being aware of the risks posed, put thousands of vulnerable customers at a direct risk of harm and prevented their devices from connecting to alarm monitoring centres while the disconnection was in place.
Ofcom previously told the telecoms industry that during this migration process, telecoms companies must ensure they identify, protect and support vulnerable customers.
Financial penalty could have been worse
As a result of Virgin Media’s serious failures, Ofcom has fined the company £23,8million. The money will be passed on to HM Treasury.
The fine would have been higher if it hadn’t been for Virgin Media entering into a settlement process and cooperating with Ofcom’s investigation. The company reported itself to Ofcom in December 2023.
Ian Strawhorne, Ofcom’s Director of Enforcement, said:
“It’s unacceptable that vulnerable customers were put at direct risk of harm and left without appropriate support by Virgin Media, during what should have been a safe and straightforward upgrade to their landline services.
“Today’s fine makes clear to companies that, if they fail to protect their vulnerable customers, they can expect to face similar enforcement action.”
What is Virgin Media doing to protect other vulnerable users?
Additional safeguards have now been put in place, allowing Virgin Media to resume migration. These safeguards include:
- conducting manual reviews of customer service records to further identify Telecare Customers and incorporating this into operational best practice for the remainder of Virgin Media’s digital phone switchover;
- conducting an assurance campaign, contacting 42,991 identified Telecare Customers to support them in migration;
- developing a new engagement plan for Telecare users. This includes keeping non-engaging Telecare users in a continuous loop of engagement rather than disconnecting them; and
- working with local authorities to establish an “end of process” for Telecare customers who have not engaged by the time Virgin Media decommissions the analogue network.
Further information and support
For further information about the switchover, including how it will affect vulnerable landline customers, please visit the official Digital Phone Switchover website. This website is hosted by the Digital Connectivity Forum (DCF), the government advisory body on telecommunications. It is supported by all telecoms companies involved in the switch.
By: Marc Thornham | Image: Digital Phone Switchover scheme