Ofcom concludes that vulnerable telecare customers were ‘at risk of harm’ when they were disconnected by digital upgrade to landlines
Communications regulator Ofcom has fined telecoms company Virgin Media a huge £23.8m for ‘serious systemic failures’ that led to the disconnection of phone landlines relied on by vulnerable customers who use telecare alarms.
In fact, Virgin Media reported itself to the regulator – following some serious incidents related to disconnections in November and December 2023. Ofcom duly launched an investigation.
The issue was to do with problems in upgrading the landline network. The old, copper-based public switched telephone network (PSTN) is now well beyond its expected lifespan and is increasingly unreliable. The transition to digital landlines is needed to ensure modern, reliable and resilient phone services.
While this migration is necessary, companies are required – under General Condition C5.2 of Ofcom’s consumer protection rules – to ‘establish, publish and comply with clear and effective policies and procedures for the fair and appropriate treatment of consumers whose circumstances may make them vulnerable.’
That includes customers who use telecare alarms, which rely on the phoneline to summon help. Any disruption to that connection could have a serious impact on safety.
The regulator’s investigation found that there had been ‘serious systemic failures in Virgin Media’s migration process’ for more than a year, between August 2022 and December 2023. It found that the company had failed to properly identify and record the status of telecare customers, which led to significant gaps in the screening process. That in turn meant that those affected did not receive the appropriate level of tailored support during the migration.
The regulator also found concluded that Virgin Media’s approach to disconnecting telecare customers who did not engage in the process of migration process put thousands of vulnerable people at direct risk of harm. Devices could obviously not connect to alarm-monitoring centres while lines were disconnected. You can read Ofcom’s full report.
Ofcom took into consideration the vulnerability of the customers affected, the significant duration of the issue, the seriousness of the breach and the significant degree of potential harm. But it also factored in that Virgin Media reported the problem, admitted its failings and cooperated with the investigation.
As a result, the company has been fined £23.8m, which includes a 30% discount because Virgin Media admitted liability. The company must pay the fine within four weeks.
Ofcom acknowledges that the company has taken ‘significant’ steps to remedy the issues highlighted in the investigation. Migrations were paused in December 2023, when problems were identified. Virgin Media has since then updated its policies and procedures, and introduced further safeguards.
Ian Strawhorne, Director of Enforcement at Ofcom, says: ‘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.’
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